Purchasing your first home is a significant and thrilling milestone that can enhance your life. As a first-time homebuyer, it’s a dream within reach, despite the current housing market challenges like limited inventory and affordability issues. If you’re prepared, eager, and financially capable, here are three tips to help you make that dream a reality.
Save Money with First-Time Homebuyer Programs
Covering the initial expenses of owning a home, such as the down payment and closing costs, can seem intimidating. However, numerous programs exist to assist first-time homebuyers in obtaining a loan with minimal or no upfront costs. According to Bankrate, you may be eligible for a first-time homebuyer loan or assistance, which usually have more lenient criteria, such as a lower down payment and credit score. Many of these programs also offer aid with closing costs and the down payment through grants and low-interest loans. For further information, consider contacting your state’s housing authority or visiting websites like Down Payment Resource.
Expand Your Options by Looking at Condos and Townhomes
Currently, there is a shortage of homes for sale, leading to increased home prices and decreased affordability for buyers. To address this issue and find a home promptly, considering condos and townhomes could be beneficial.
These properties are often more affordable because of their smaller size. However, they still offer the opportunity to own a home and build equity, serving as a stepping stone toward a larger home in the future. According to Hannah Jones, Senior Economic Analyst at Realtor.com, condos can be an excellent entry point for prospective homebuyers with a smaller budget but a strong desire to enter the market and start accumulating equity.
Consider Pooling Your Resources To Buy a Multi-Generational Home
Another option to enter the market is to buy a home with friends or family. This allows you to divide the costs of the mortgage and bills, making home ownership more affordable. As Money.com explains: “Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”
Bottom Line
Considering first-time homebuyer assistance, condos, townhomes, and multi-generational living can simplify the process of finding and purchasing your first home. When you’re prepared, I’m here to help you get started.
