When you’re getting ready to purchase your first house, it can be easy to overlook the financial details due to the excitement of the journey itself. We’re here to make sure you keep all of your facts and figures in mind while looking for your dream home with these 5 creative ways to finance your first house in Riverside.
It may surprise you to learn just how much money is left on the table by individuals who would qualify for a generous government loan.
Programs through the Department of Veteran’s Affairs and Federal Housing Administration come with their fair share of required qualifying events, but will often provide spectacular benefits for those who are willing to do the work and jump through the necessary hoops. Clearly, you have to be a military veteran in order to be eligible for a VA loan, but USDA loans through the Federal Housing Administration can be an option to those who have never served in the military.
The best way to find out your eligibility for any loan program outside of a VA loan is to contact your county’s Federal Housing Administration office and ask them directly. If they cannot give you a thorough answer, they can certainly guide you in the direction to obtain a surefire answer.
While inquiring about federal programs, ask if there are any local programs that could help you finance your first house – it certainly can’t hurt.
Rent to Own
For some of you looking to get started in your first home, you may not be in a situation that allows for a lump sum down payment.
There’s always the possibility of working out an agreement with the property owner to pay rent with the understanding of outright purchasing the home in the future. This obviously comes down to finding the right owner with the right property to allow for such a scenario to play out, but it could wind up benefitting you both in the end.
Be sure to have any agreements written up in a clear and concise format by a legal professional, and have everything notarized to guarantee protections for both you and the current owner.
Enlist an Investor
A less typical method is finding an individual or business to personally finance your home purchase instead of getting a mortgage through a traditional bank or lender.
This means meeting with the investor(s) regularly during your application process and providing all personal documentation they require.
Understand that your legal protections when dealing with private individuals will likely be a little shakier than going with a bank or lender due to relaxed state and federal regulations regarding investors.
Something that has become more popular over the last few years is turning to public crowdfunding platforms to assist in achieving personal goals that require certain levels of finances.
Using crowdfunding to purchase your first home requires transparency and earnestness that some could find very unappealing, but the only way of discovering if it could work for you is to try it out.
If you’re the sort of person who is good at and enjoys marketing yourself, this could yield very positive results.
Where the previous suggestion was extremely public, seeking a private personal loan from your chosen bank or credit union could be worth exploring.
A personal loan is going to be for substantially smaller amount than a traditional mortgage, and it’s likely that the interest rate will be much higher.
Tread carefully in choosing to take this route in order to ensure you don’t find yourself paying exorbitant fees if you fall on financial hardship for a period of time.