Affordable Housing: Buy a Home on a Tight Budget
Generally, the higher the mortgage loan you qualify for, the easier and more stress-free the home buying process will be. However, it is possible to buy a home even if you have limited funds! Affordable housing doesn’t have to be a distant dream. If you don’t have a lot of financial flexibility, you can still buy a house on a tight budget.
Narrow Down Your Priorities
The first thing that you need to figure out what the most important features in a home are to you. Narrowing down two or three features that matter the most to you will help focus your search. For instance, do you want a property with a big backyard for your kids to play in, or do you want an open floor plan? Identify the top features that are important to you and only focus on the homes that have those features.
Be Open to Compromising
You will have to be prepared to make several compromises if your budget is tight. However, it is important to note that there is a difference between compromises that can be corrected later on and permanent compromises. For instance, you may have to settle for a kitchen that is outdated but functional for now, intending to remodel the kitchen when you can afford it. Finding affordable housing means you will need to flexible.
But it may not be wise for you to settle for a small, two-bedroom bungalow when what you really need is a four-bedroom house. So, although compromises might be necessary, there are some that you may regret making in the long run.
Prepare for Some Handiwork
Buying a home on a tight budget might mean that you have to settle for an older house that, although is structurally sound, will need a lot of work as a cosmetic overhaul. Affordable housing that needs work can help to stretch your dollars further. The good news is that there are changes you can make to a home that are simple and relatively low-cost.
For example, you don’t need to break the bank to paint walls, update rusted bathroom fixtures, or replace old carpets. However, it’s more difficult and pricier to install new piping or ductwork, or to re-run wires. You can always focus on the more expensive renovations when you can afford them.
Consider a Short Sale or Foreclosure
You can also find an affordable home that is in good condition if you opt for a short sale or foreclosure. A homeowner is allowed to sell the property by the lender with a short sale. This is despite being behind on their mortgage. That way, when the property sells, the proceeds will pay off the mortgage. Because in such cases, lenders want the properties to sell quickly, they usually agree to a lower price.
A foreclosure is a property that has been reclaimed by the bank because the owner defaulted on mortgage payments. Similar to short sales, banks normally want a foreclosure to sell as quickly as possible. Therefore, foreclosures usually make for more affordable housing. However, although you may get a good deal on the purchase price, purchasing either type of property has several drawbacks you need to be aware of.
For instance, because you are purchasing the house as-is, if you notice any glaring issues with the house when you have already purchased it, you will have no choice but to address them yourself. Foreclosures and short sales are also associated with bidding wars, which you may not be interested in participating in. Most times, however, the savings at hand can outweigh the disadvantages.
Affordable Housing in Bend: Is It Attainable?
Having a limited budget doesn’t mean that you can never buy a suitable home. All you need to do is to set your priorities, remain flexible, be willing to do some handiwork, and be open to exploring non-conventional choices for purchasing a house. For ideas on affordable housing in the Bend, Oregon area, check out our local government’s site.
However, you don’t have to do the search on your own- we are here to help! Click below to get started today.