When it comes to purchasing a home, it isn't always able to purchase a home with two incomes. If you are trying to purchase a single family home for sale on one income, here are a few tips that can help.
Look into Down Payment Assistance Programs
When purchasing a home for a single mom or dad supporting a family, one of the biggest hurdles, is the down payment. It can be difficult to save the money required for a down payment, especially if you are aiming to save 20% of $100,000 or $200,000 dollars, which adds up to around twenty to forty thousand dollars. That level of down savings can be overwhelming.
Luckily, there are lots of down payment assistance programs that will pay part of your down payment or allow you to put down a much smaller down payment. The most popular program on the federal level is offered by the Federal Housing Administration which allows people from single-income homes to put down as little as 3.5% with a good credit score. There are other federal, state, and even local programs that can help you get past the hurdle of putting down a big down payment.
See if Someone Will Support Your Purchase
Try to get someone in your corner who will support your purchase. When you are purchasing a home on a single income, it can be tough to get the type of loan terms you want. That is why it can be a good idea to find someone who will be a co-purchaser with you or who will act as a qualified guarantor.
You may want to set-up a written agreement so that over time, you can take them off the dead to the home. Make sure you clearly outline what will happen if they have to take over the payments. If you ask someone to help you, be sure to put down the agreement on paper.
Consider Homes Below You Means
One big mistake many home buyers make is they only look at homes at the top of what they qualify for. When living on a single income, it can be a good idea to look at homes that are below your means. Look at homes that are well below what you can afford to pay per month. For example, look at homes where your 30-year payments will average out to $800 instead of $1,200. Going a little below what you can afford will give you an extra cushion. You can save that extra month per month to build up a home emergency fund to take care of home repairs, or you can use that extra money to pay unexpected expenses or use it to pay off your loan faster. Buying a home below your means will make it easier to save up for a rainy day, and easier to pay off the loan quickly.
When purchasing a home on a single income, look into the wide variety of home deposit assistance programs out there. See if someone will support your loan. Purchase a home below your means so you can build up emergency savings, and then use the extra money you save on your mortgage to pay off the home at a faster rate.Share
30 April 2019
I have always been someone who is passionate about making the world around me more beautiful, which is probably why I was drawn to real estate initially. I really wanted to create a place where me and my family could spend a lot of time together in a peaceful, relaxing place, so I started looking for places in my area that were fit for the job. Within a few months, I was able to find an incredible property that was within my price range, so I purchased it as soon as possible. This blog is all about choosing beautiful real estate.