Buying a house: How to buy property if you’re broke

House

Buying a property at any time is a great investment. But most of the time, with the current economic landscape, you’ll find it difficult to fund a house. That is why in this article, we’ll go through different ways with which you can own a home even if you do not have enough money.

USDA Loan

Introduced in 2014, the USDA loan allows you to purchase areas by borrowing the area. This isn’t limited to just areas with landfills and fields of green pastures. They include lands that are in neighbourhoods that are spread across the United States.

USDA loans are for people who cannot get mortgages or people who aren’t wealthy. It also offers rural or suburban home buyers with zero down payment mortgages. Thanks to the USDA, close to 130,000 families were able to buy or upgrade their homes.

Invest in the market

Another way you can invest is by wealth-building assets in the form of stocks and properties. All you have to pay is 20$ per week.

After you have overcome the uncertainty of investing money in general, you’ll have to make a plan that will allow you to spend every week or every month. Remember, this is a long-term plan, and you’ll need to consider what the market will be like in the future more so than what it is right now.

Loan Assumptions

 

One thing that you could consider is assuming the mortgage. Although not all loans can be assumed, there are some such as the VA and FHA loans.

Some people might say loan assumptions aren’t advisable. But loan assumptions will be more popular in the future because of the higher interest rates. Hence, you can assume a loan that is currently at a low-interest rate and see it rise in the future.

Buying the house that you rent

You can talk to the house owner about a possible lease to own or land contract if you plan on buying the house that you’re staying in. A purchase such as this is excellent for anyone who is rebuilding their credit or if they do not have enough for the downpayment.

A lease to own agreement only requires a small down payment. You’ll have to speak to the landlord about how much the rent will go in purchasing the house as well as how long the rent period will last. After that, apply for a mortgage to complete the purchase.