When it comes to financing your home purchase, you want to know all of your options so that your new house goes through easily and you get the chance to be on the property ladder. Buying a house is a big decision financially and emotionally and you have to be ready to go – even if you go it alone.
There is no one way to buy a home that works for everyone. In fact, there are several ways that you can buy a house, and knowing all of your options for both an existing home and a new build will help you in funding property development. Below, we’ve got seven ways that you can finance your home and ensure that you are a homeowner in no time at all.
1. Go the conventional route
There are options for you to apply for a conventional mortgage and it could be the best thing that you do this year! Conventional mortgages are the most common financing tool for your home and they expect you to have a debt to income ratio of less than 50%. Down payments on homes can vary, but you need to consider that you need to have at least 20% as a deposit if you want to avoid mortgage insurance.
2. Government loans
Did you know that you can check out government loan options if you don’t qualify for a conventional loan? State and local governments can offer home buying programs that can help you with different discounts and ensure that you get the down payment assistance that you need. You still need a decent credit score to qualify but you can work on that early!
3. Ever heard of seller financing?
This is where the seller is happy to forgo the traditional lenders and will lend you the money and you pay them the mortgage installments. You’ll need a bigger down payment, though, and it’s ideal for buyers who aren’t going to qualify for the traditional route!
4. You can find an investor
If you are funding property development options, then you might need to find an investor. There are plenty of homes out there that need doing up and if you need one, the investor will provide the funds and then later, they’ll flip the property for a profit after you have decorated and redone it!
There are crowdfunding sites out there that will help you to raise the money you need for a new house, and friends, family and strangers aren’t the only ones with deep enough pockets to help you! You can take on a wide range of donors by posting your story to crowdfunders and letting them help.
6. Jump into your retirement pot
If you want to get the money together for a new house, then you can tap into your retirement savings and draw from that. Buyer beware – that’s your pension!
7. Rent to own
Lastly, a good way to own your own house is to rent it to own it later, where you pay half rent, half mortgage together and put your home together that way!0