So you’re looking to buy a home and you’ve just decided that the real estate market is way out of sight. You can’t afford a home. You can’t afford the payment. And you’re about to give up.
Don’t give up! I’m going to give you five reasons why you should look a little bit longer. And let me give you a quick piece of advice- if you’re looking at online loan calculator, they’re often way too conservative.
So if you’re feeling like you can make the payment, but the online calculator tells you it’s not even close, don’t trust the online calculator.
Call someone who has lots of experience and has connected with lots of lenders like myself.
So–five ways to potentially overcome the home prices:
#1 Adjustable Rate Mortgage
Adjustable rate mortgages start a little bit low, and then they gradually go up. There’s so many different varieties of them, but they’re coming back and they’re getting better.
An adjustable rate mortgage can help get that payment down a little bit.
#2 Accessory Dwellings
You might consider looking at a home that has an accessory dwelling like a basement that you could rent out. This can help. I know lots of people who are renting out basements or accessory dwellings.
It’s getting their mortgage payment way down because of all that extra cash they get from renting.
#3 A Multi-unit Property
A duplex, for example- if you do an FHA loan (three and a half percent down payment, which is a pretty low down payment for a multi-unit home) you can actually rent out the other side and count that as income, which can lower your monthly payment dramatically.
#4 Combine Households
This may not happen as much, but I see it enough. You have two households, and you combine households- you combine your income and your debts.
Maybe you split the payment in half or in some sort of variation. And now between the two households, you can buy a home.
And now you can have some home ownership, little more details to work out that way because you’ve got two separate households, but people do it. It’s a way to look at to a home when you couldn’t have otherwise afforded it.
#5 Start Smaller
This may be self-evident, but you might be looking at a single family home and maybe your first home (since home prices have gone out of sight) is a townhome or a condo.
Now that may not be your end goal, but it can get you in the game. And when you’re in the game, your real estate starts accruing value.
And that might put you in a position where the next time around- you get an income boost, a different job or whatever- you are able to afford the homes because you’re already in the game and your home is going up with all the other homes.
Hopefully this has been helpful, please feel free to reach out to us! You can text us, you can call us, or even apply for a loan, but we’d love to meet with you and help you with any questions you have!
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