It’s great to be young and independent. You can do what you want, when you want. But that get’s old pretty quickly. You can’t party forever (or maybe you can), but all of the money you’re spending living “the life” could be saved and put somewhere else. While it may seem like a tall task, saving money and building credit aren’t impossible and that’s what you’ll need to do to qualify for a mortgage loan. Your current position in life may allow you to save money now in a way you might not be able to later in life because of other obligations. All it takes is a little more attention to detail and effective money management and you’ll have enough money saved up for a down payment in no time.
Real Estate Is Cheap
Even though real estate prices are on the rise, the real estate market offers many bargains for potential home buyers in the form of distressed sales. Distressed sales are properties that have been foreclosed on and the bank is willing to sell them quickly at a significant loss to clear their books. There are a lot of distressed homes for sale and buying one would allow you to own a home for significantly less than market value as home prices continue to rise. However, it is important that while you’re buying a house at a significant price cut that you can still afford what you’re playing.
You’ll Have Another Source of Income
If you rent out a property that you’ve recently purchased, you’ll be adding to your income as soon as you have tenants. The money you earn will be enough to cover the mortgage as well as extra to cover bills, debt, reinvest into the property or purchase another rental property.
FHA Loans Can be Used to Your Advantage
Conventional loans require a hefty down payment of around 20% that FHA loans don’t. They are great for people who don’t have the best credit or enough for a down payment. Many FHA programs require a minimum down payment of 3.5% but there are some that require none at all. There is one catch however, in that FHA loans require that you live in the property you purchase. However, to get around that rule you can purchase a property with up to four rental units and make one of them your primary residence.
According to reports, homeownership among immigrants is expected to account for 36% of housing growth over the next decade. As more individuals and families make the shift to owning a home, property owners will be able to capitalize on the move. The opportunity to own property in a neighborhood whose value is projected to skyrocket is too good to pass up.