For most people, buying a home is a dream come true. You may be tired of moving at the end of each lease. You may want to have the freedom to decorate as you wish. Or you may simply want to save money by working toward ownership rather than filling the pockets of a landlord.
However, buying a home may seem impossible for some people. Obstacles such as bad credit, low income, self-employment, and down payments can keep you from fulfilling your dreams of homeownership.
Yet there are other ways to buy a home besides taking out a substantial mortgage. If these obstacles apply to you, consider these alternative methods of homeownership.
HUD Auctions
HUD manages many homes throughout the country. If someone defaults on their mortgage from a HUD home and it is foreclosed, it only remains on the market for six months before it is put up for auction. You can often get very nice homes for very little investment through these auctions.
The lower prices for these homes combined with the more lenient requirements for a home loan through HUD programs put homeownership within the reach of many.
Rehabilitation Programs
There are some programs out there that allow you to buy a home for as little as $500 down. These homes are often in need of rehabilitation, although some programs handle much of this for you before you move in.
The programs are run by organizations that help you overcome credit obstacles to get a home loan to buy the deeply discounted homes. You will probably have to put some work into these homes after purchase, but the monthly payments will be low.
NEXT: Tax Auctions & More Options To Weigh!
Susan McCullah is an established writer who has created dozens of informative articles about credit scoring, identity theft, budgeting, taxes, debt, and finance. She has worked in the Credit Reporting industry for 15+ years and is FCRA certified. Susan regularly conducts in-person presentations and webinars on the topics of credit scoring formulation, raising credit scores, and identity theft.
