Creative Ways to Buy Your First House

So you want to buy a house? Ok – there are some things to think about before you find that dream home!  Prices in Colorado can pose a big challenge for first-time buyers  – our average home price is over $200,000. Traditional loans will require some down payment ( approx $7000 or 3.5% of the purchase price ) If you can’t obtain the cash – here are a couple options.

Buy a Home in Need of Renovation
When you can’t afford what you want, look for what you can afford and use it as a stepping stone. There are plenty of lower-priced houses out there in need of repair.  ALMC has the loans to help you repair the home if it is in distress or do a remodel before you even move in!

Buy a Home with a Friend

Is there someone you can live with? You could consider buying into a home with shared ownership.  If you are not related, the most common way is to buy as tenants in common. You both qualify for the loan and both own 50% of the property. This ownership protects the rights of individual owners and in the event a a dispute there can be problems as both parties will always have to agree to make the transaction work.  The other option is to buy the home as joint owners. You qualify for the loan together and you each own your 50% – however, if one of the parties passes away the other party receives the other 50% without probate – this option is typically used for family members and spouses.

Buy a Home with Help from Your Parents
Lots of peopl live with family to save money for their 1st home down payment, so don’t rule it out. Shared expenses is a great way to sock away some cash.    Obviously, this method requires a good relationship between you and your parents or in-laws, and discussing money and expectations up-front (everything from paying rent to doing chores) will help keep it that way.

Buy a Home with NO MONEY DOWN

 Although this seems like a great option, it can be very risky. Currently the only TRUE no down payment loan is a VA loan. There are other types of down payment assistance programs etc…but you need to know the guidelines to tricky to navigate the qualifications. If you borrow 100% of the value of your home and the housing market drops, you will end up owing more than your house is worth.  There is also a wide array of federal, state and local programs designed to help first-time buyers and low-income buyers purchase a home.

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
This entry was posted in Finances, Home Buying. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *