Owning a Home for Less in an Expensive Location
Affordable homes in expensive areas is no more a ‘No Way!’ thing. It may not look an easy thing to say. However, there are more options than you know.
2019 will bring the affordability tipping point where home ownership will get considerably affordable than before. The inflation in the home process is slowing. By the start of 2019, mortgage rates had fallen.
Here are some secrets to affordable home ownership and achieve your dream of living in a prime location.
1. Think Bigger
If you think you cannot afford a typical home, you may need to think bigger. You can think of a bigger home designed for two, three or four families. You can rent out the other rooms or units to others. This may help you cover your entire mortgage payment without denting your pocket. If the home is in an expensive area, the rent will reflect the same.
FHA loans are available for buying a multi-units home that comes with higher borrowing caps the more units you’re buying.
2. Container Homes
Container homes are made from big, steel shipping containers. These homes are affordable but small (around 100 square feet). If you buy eight together, you can have a spacious home at a considerably lesser cost. The advantage of going to container homes is the cost of buying. However, if you combine multiple homes, you can get your desirable home. You may need to add the insulation to avoid cold and heat.
3. Small Homes
Tiny homes are more popular these days. These homes are often located in expensive areas with the floor area smaller than 500 square feet. Though they are small but provide a decent lifestyle that’s often planet-friendly, and affordable. You will often get a loan option quickly for this type of home. So, hunting for a mortgage lender becomes easy.
4. Involve Co-borrower
If you buy a home with your friend or family, the affordable home ownership would be possible. You can use your saving for the down payment. If purchased with a co-borrower, both the incomes will be considered for the borrowing limits. Both of you need similar credit scores and need to agree on an exit plan upfront.
With these tactful planning for buying a home, your dream of affordable home ownership will not seem that far. However, to achieve your dream, you need to think differently than usual.