Buying A Home – Especially When A Home Loan Seems Outrageous

If you’re like most renters, you’ve probably given up hope of owning any real estate. But before you throw in the towel, take some time to evaluate your rent expenses versus a home loan payment after all tax deductions. After thoroughly evaluating both alternatives, you still feel a mortgage loan is beyond the reach of your monthly income, don’t give up complete hope. You have many other creative alternatives to help you conquer a devastating loan payment.

If you set things up right, you could make up for most of your monthly loan payment and a large portion of the utilities. When you factor in the tax savings and increased net worth, you have the potential to net a respectable profit. Plus after you pay off the mortgage, you own and asset without any liens and encumbrances. Many renters, single or married, have benefited from home ownership after taking the necessary steps to enter the real estate market. Here are some other alternatives to check out:

1) Construct a guest unit you can rent out for income.

2) Reduce your monthly loan payment by switching to a low adjustable rate loan. In light of the recent melt down in the mortgage business, you should consult with an experienced mortgage agent or real estate lawyer prior to locking yourself into this type of loan.

3) Lower your monthly loan payments with a graduated payment mortgage.

4) Apply for a loan with a balloon payment to slash your monthly loan costs.

5) Research the option of buying a duplex, triplex, or other property that provides monthly income to help offset your monthly mortgage expenses.

6) Inquire with a local mortgage agent to see if a mortgage credit certificate program (MCC) exists in your area. Under this program, the government offers you mortgage aid up to $2000 each year.

7) Consider the option of obtaining a part time job to increase your monthly income. This will alleviate any financial pressures to make your monthly mortgage payment, especially if your existing income barely covers your monthly expenses.
Speak with your boss about raising your income or offering some sort of allowance for housing.

9) Consider co-ownership with another friend or family member.

10) Look into an interest rate by down.

11) Explore the alternative of taking over a seller’s existing low interest FHA or VA loan.

12) Acquire a low-equity rate buy down.

By using the above options, you can slash your monthly loan obligations and increase your cash flow. But if you are serious about increasing your ability to purchase a better house, practice good money management and budget your monthly income and expenditures.

One exercise to help you prioritize your budget is to write down all your regular monthly expenses to see where you spend the majority of your income. Although most renters long to own a property, they expend the majority of their monthly income towards non-appreciating costs such as the latest automobiles, hi-definition TV’s, and concerts. By simply spending time re-evaluating your monthly budget and cutting out unnecessary expenses, you’ll increase the odds of buying a house sooner.

Looking to find the best deal on a starter home? Then check out these Anaheim homes for sale and use a local Anaheim Realtors to help you find one.