If you’re like most renters, you’ve probably given up hope of looking at Anaheim homes for sale and buying 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.
One option to afford a home in a nice neighborhood is to seek out several roommates who pay you rent. If the circumstances work out, your rental income could cover over half of the mortgage payment and a significant portion of the utilities. After calculating tax benefits and increasing equity, it’s possible for you to make money. Additionally, when the loan is paid off, you would own an asset free of any liens and encumbrances. Time and time again, many singles and couples have taken advantage of this creative arrangement to enter the housing market. Other options to consider include:
1) Construct a guest unit you can rent out for income.
2) Lower your monthly payments by taking advantage of an adjustable rate mortgage. However with the current disaster in the mortgage industry, it’s wise to seek the counsel of the reputable loan agent or real estate attorney before committing yourself to this type of loan.
3) Lower your monthly loan payments with a graduated payment mortgage.
4) Sign up for a balloon mortgage to cut your monthly expenses.
5) Consider purchasing a duplex, triplex, or some other income producing home to help you cover the cost of the mortgage.
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) Add a part time job to bring additional income to supplement your payments.
Speak with your boss about raising your income or offering some sort of allowance for housing.
9) Look into the alternative of buying a property together with a family member or friend in the same financial circumstances.
10) Consider the option of buying down the interest rate.
11) Consider taking over a low interest FAA or VA loan.
12) Take over a low-equity rate buy down.
Most of the time, the above strategies help lower your monthly payments or increase your available cash. However if you really want to leverage your ability to buy a better home, trying to prioritize and budget your income and expenses.
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.
