Buying a home is the American Dream. But for many, that dream has become out of reach. With low inventories and high prices, finding a property within your budget has been difficult. But there are some options available if you know where to look!
In this article, we’ll explore seven creative ways you can buy a home, even if you’re short on cash.
1. Look for Deals in Foreclosures and Short Sales
Foreclosure homes are where a bank has taken possession of the property due to non-payment or inability to pay a mortgage loan. A short sale is when a homeowner sells their house before the foreclosure process because they owe more money on it than what it’s worth.
Both of these scenarios arise when homeowners cannot afford their mortgages anymore, so banks allow the home to be sold at less than the market value, which allows them to recoup some of their losses from lending out too much money in the first place! In short, this is great news for buyers who want low prices and don’t mind dealing with existing damage to a home.
2. Take Advantage of FHA Loans
FHA, or Federal Housing Administration home loans, are provided by the federal government and insured by the lender in case of default on monthly payments.
This makes them very safe for lenders, which means you may be eligible for lower rates than other financing options!
The money needed for up-front fees is also significantly less than it is for other types of loans, meaning that your down payment will be much smaller in comparison to the size of the house you’re looking at purchasing.
3. Look into Partnerships
Many people find that if they partner with another individual (or group), they can purchase property more easily; each person brings something unique, making it much easier to afford.
If you team up with someone, you can share experiences and responsibilities and split down payment costs.
4. Get a HELOC
A home equity line of credit (or HELOC) is where the owner loans money against the value of their home. This loan is secured by your house, which means that if you fail to pay it back, then your lender may take possession of the house since they have first dibs on whatever assets are attached to this agreement.
The best part about these types of loans is that there aren’t any closing fees associated with them; they are also easier to get approved for than other options! They typically offer lower rates than traditional loans as well.
5. Look for Rent to Own Deals
Rent-to-own agreements are where the homeowner allows the renter to staying in the house by paying monthly rent, with an option to buy it after a certain amount of time has passed.
While they might seem like a great idea, they can also be extremely risky since there may not be any guarantee that you’ll be able to purchase the home once you’re done renting it due to changing market conditions or unexpected financial problems.
6. Put Your Previous Property on the Market
If you already have your own place but are looking to upgrade, why not make some extra cash by selling what you’ve got?
This is especially helpful if you bought your property years ago when prices were much lower, and selling will bring you a larger profit than if you sold it today.
You can use the extra money to help fund your new home or just let it sit in the bank as savings- either way; it is beneficial! This method of finding funds is probably one of the least time-consuming ways, too.
7. Consider Leasing Out an Extra Room
If you already have a single-family house that is currently empty (or not being used to its maximum potential), why not lease out one of those rooms?
You might be surprised at how many people are interested in renting your unused space, especially with prices as high as they are these days!
If you find an ideal renter and set up a long-term agreement with them, you can potentially make a steady income in exchange for them staying at your place.
With the market as competitive and prices high, it can be hard to find a way into real estate. Luckily for you, we’ve compiled seven different ways that people from all walks of life can purchase their own property- no matter how much money they have or what kind of home they’re looking for! We hope this article has helped point your search in the right direction.