Search area listings
Realty Executives

Buyers' Resources - Financing & Credit

 

6 Creative Ways to Afford a Home


8 Steps to Getting Your Finances in Order  |  Budget Basics Work Sheet  |  8 Ways to Improve Your Credit 5 Factors That Decide Your Credit Score  |  How Big a Mortgage Can I Afford? 10 Questions to Ask Your Lender  |  10 Things a Lender Needs From You  |  6 Creative Ways to Afford a Home Choices That Will Affect Your Loan  |  5 Property Tax Questions You Need to Ask

If your income and savings are making homebuying a challenge, consider these options.

  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.hud.gov).

  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. 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.

  5. 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.



8 Steps to Getting Your Finances in Order  |  Budget Basics Work Sheet  |  8 Ways to Improve Your Credit 5 Factors That Decide Your Credit Score  |  How Big a Mortgage Can I Afford? 10 Questions to Ask Your Lender  |  10 Things a Lender Needs From You  |  6 Creative Ways to Afford a Home Choices That Will Affect Your Loan  |  5 Property Tax Questions You Need to Ask
Content from REALTOR® Magazine Online with permission of the
NATIONAL ASSOCIATION OF REALTORS® Copyright 2005.
All rights reserved. www.REALTOR.org/realtormag
   
 
Home | Search Area Listings | Meet Our Brokers | Visit Our Communities
Read Our Fan Letters | SW Colorado Maps | View Our Gallery | Sellers' Resources | Buyers' Resources
Contact Us

Agent Web Mail Access Site Updated: Sun Jul 06 2008