6 Creative
Ways to Afford a Home
| 1. |
Investigate
local, state, and national downpayment assistance programs.
These programs give loans or grants to cover all or part
of your required downpayment. National programs
include the Nehemiah program (http://www.getdownpayment.com)
and the American Dream Downpayment Fund from the U.S.
Department of Housing and Urban Development (http://www.hooksvanholm.com/). |
| 2. |
Get the
seller to provide financing. In some cases, sellers
may be willing to finance all or part of the purchase
price of the home and let you repay them gradually, just
as you do a mortgage. |
| 3. |
Consider a
shared-appreciation, or shared equity, arrangement.
Under this arrangement, your family, friends, or even
a third-party may buy a portion of the home and thus share
in any appreciation when the home is sold. The owner/occupant
usually pays the mortgage, property taxes, and all maintenance
costs, but all investors’ names are usually on the
mortgage. There are companies that can help you
find such an investor if your family can’t participate.
|
| 4. |
Get help from
your family. Perhaps a family member will loan you
money for the downpayment and/or act as a cosigner for
the mortgage. Lenders often like to have a cosigner
if you have little credit history |
| 5. |
Lease with
the option to buy. Renting the home for a year or
more will give you the chance to save more toward your
downpayment. And in many cases, owners will apply
some of the rental amount toward the purchase price.
You usually have to pay a small, nonrefundable option
fee to the owner. |
| 6. |
See if you
can qualify for a short-term second mortgage to give you
the money to make a higher downpayment. This may
be possible if you have a good income and little other
debt. |
Return
to Buying Tips Page
Dennis Martin Realty
info@dennismartinrealty.com
|
