6 Creative Ways to Afford a Home


1. Investigate local, state, and national down payment assistance programs. These programs give qualified applicants loans or grants to cover all or part of your required down payment.


2. Explore seller financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you would do with a mortgage.


3. Ask your family for help. Perhaps a family member will loan you money for the down payment or act as a co-signer for the mortgage. Lenders often like to have a co-signer if you have little credit history.


4. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.


5. Consider cutting down on expenses. Some of the program that you may find could require as little as $500.00 out of your own pocket. Cutting back on expensive coffees or staying in for the weekend could be all it takes to achieve home ownership. Be frugal for a short period of time can yield long term stability.


6. Sell some personal belonging that you no longer use. Your down payment could be as close as your attic. Hold a garage sale and put away fund funds into a jar labeled  "Home Ownership Fund". Liquidating old or unused items and saving the proceeds could be the "key" to funding your new home purchase.


BONUS TIP: Always give receipts and track where your funds come from, mortgage lenders will want to know where you came up with the down payment. Be prepared to furnish this information to a mortgage lender.