Most people think buying a house is out of their league, but I promise you it isn’t. Here are four ways for you to buy a home.
Option #1: Get a mortgage.
While most homes do cost hundreds of thousands of dollars, you don’t have to pay that much upfront. At first, you can get a mortgage, which is of course a loan specifically for property. Right now is a great time to buy. Interest rates are extremely low, which brings down the cost of borrowing money. In a lot of cases, when you get a mortgage, you only have to pay about 3% upfront of the asking price. Sometimes, you may not even need to have a down payment.
Option #2: Learn about the FHA.
If you have a low credit score or low income or don’t think you can qualify for a traditional mortgage, then take advantage of government programs. One major resource popular with first-time homeowners is the Federal Housing Administration (FHA). Your credit score can be as low as 500 to be considered for an FHA loan. Plus, the downpayment with an FHA loan is only 3.5%. So let’s say you want to buy a house for $250,000. You only need about $9,000 to buy that house. The FHA even offers loans to help homebuyers purchase a home and renovate it. All with one single mortgage, you can find a fixer-upper and turn it into your dream home with a little help from the government.
Option #3: Downpayment assistance programs
Downpayments are typically a huge stumbling block for potential homeowners. Luckily, there are downpayment assistance programs that offer grants and low-interest loans to help homebuyers afford a place of their own. There are more than 2,500 downpayment assistance programs across the United States. On average, they save homebuyers more than, get this, $17,000. If you need help with your downpayment, search locally because most programs are at the state, county or city level.
Option #4: USDA loans for rural areas
There’s another great government resource for buyers living outside of major cities: Pay attention if you live in a rural area in the United States. The U.S. Department of Agriculture (USDA) offers home loans. All you have to do is go to the website, use their map to make sure that you’re in an eligible rural area and you can apply. In many cases, you can buy a home through this program with as little as $1,000 down.
Benefits of owning over renting
It’s also important to note that in many areas, a mortgage payment costs about the same as rent. At least when you own a home, you’re investing in a source of value. And you can of course live in the property. Values tend to rise, giving you a potential profit if you sell. And never forget: Rent will always rise, too, but that will really only benefit your landlord. So like we always say here at Bold TV, don’t underestimate yourself. Check out the resources in your area that can make you a homeowner and change your life.
