There comes a time when we all have to look at our credit to purchase something we want or need. After taking a realistic inventory of your credit standing, you may need an alternative method to buy a home of your own. Let’s face it, we all have setbacks in life, some more than others. Perhaps you are in a situation that has you strapped for cash, making it unlikely or near impossible to come up with the needed downpayment. You may have gone through a foreclosure or been the victim of fraud that trashed your score. Whatever the case, you need to understand that you will have to prove your financial responsibility and that you can afford to make reliable payments after you close the deal. Before embarking on this journey, you should delve into the nitty-gritty details of the costs of homeownership. Looking at these details will help to ensure you don’t bite off more house than you can chew. You will also need to consider whether or not you will have the ability to save towards future goals, like vacations, education, or retirement.
If you are a first-time homebuyer, you will need to be aware of other expenses in addition to your mortgage payment. For example, there may be PMI, private mortgage insurance, property insurance, taxes, maintenance, repairs, and even utilities and any HOA fees. It would be best if you also had enough left over to build an emergency fund which you can set aside for any unexpected significant expenses. Read on as we explore ways that almost anyone can buy a home in NC.
Government Programs
Should you qualify for assistance, various government programs are available that can help almost anyone buy a home in NC. Depending on your circumstances, you may be eligible for USDA, VA, FHA, and HUD loans. There is also a homeowner voucher program if you have a low income and need help buying your first home. You may also qualify for programs offered by NC.
Co-Signer
While rules for co-signers may vary by lender, with someone willing to take the risk of co-signing on your mortgage, almost anyone can buy a home in NC. Remember, you must show the lender you are invested in the property to qualify for this option, typically requiring you to contribute at least 5 percent of the down payment.
Rent-To-Own
A rent-to-own agreement is a contract with a seller that allows you to occupy the property as if you were the owner while you have time to line up your credit score and build a down payment, allowing almost anyone to buy a home in NC. These agreements typically span a one to three-year period. In many cases, you will also be responsible for all expenses associated with the property as if you were already the owner.
Owner Financing
With a willing seller who trusts you and is financially able to hold the property, owner financing can provide almost anyone with a way to buy a home in NC. Of course, just as with a mortgage, you should expect to pay interest on the loan.
Borrow
Borrowing the money is another strategy that will allow almost anyone can buy a home in NC. You may have home equity that you can tap into to pay for the home in full. Or you may be able to obtain a hard money loan if you have an asset that you can use as security. Consider other resources, like family members or close friends, especially if they are willing to lend you the money with little to no interest.
Fixer-upper
If you tend to be good with a toolbox, this is one of the best ways to get into a decent home for little money down. Many homeowners have situations that make it improbable or even impossible to make necessary repairs to the house. A few of the scenarios to look for would be; children who have inherited the property and live out of state, people who have trouble fixing their roof, vacant houses with boarded windows and doors, or homes with no furniture visible through the windows. You can usually buy homes like these for well under market value and, if fixed up, can be turned into excellent family homes.
Borrow from a Friend or Family member
Parents and Grandparents are a great way to buy a home without going through a bank. They see how hard you work and can make judgments that a bank simply cannot. Family is an excellent method for getting the whole loan or the downpayment necessary for purchasing a house. It turns your family into the bank, so all interest goes directly to them. Often, your family has had a bit more time to save up the necessary funds or has them sitting in a retirement or savings account readily available. Many friends or family friends who have achieved success are in a position to help uplift those they’re close with.
Cash Money Mortgage
Another great alternative to the typical mortgage is a Cash Money Mortgage. It’s like seller financing, but with one key difference: the deed stays in the seller’s name until you finish paying off the entire loan. While many people may scoff at this idea, it’s a fantastic alternative to a standard mortgage and the aforementioned rent-to-own method.
One challenge with cash money mortgages is finding sellers who know what they are and how to do them. An attorney can generally give them all of the information they need to understand the process and write up the paperwork. There’s no deed of trust like in a conventional loan because the deed doesn’t transfer to the buyer until you make the final payment to the seller.
Pitt Home Buyers
Almost anyone can buy a home in NC when working with the pros at Pitt Home Buyers. Let the professional investors at Pitt Home Buyers help you explore all of your available options to begin living the dream of homeownership. If you want to learn more, the team at Pitt Home Buyers will listen to your questions or concerns and guide you through the process, from locating the perfect property for your budget to closing. Contact Pitt Home Buyers today at (252) 227-0274!