The problem that most renters face isn't their ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent. But saving for this lump sum doesn't have to be as difficult as you might think. Consider the following 6 important points:
#1 - LESS DOWN You can buy a home with much less down than you think
There are some local or federal government programs (such as 1st-time buyer programs) to help people get into the housing market. You can qualify as a first-time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.
#2 - LENDER HELP You may be able to get your lender to help you with your down payment and closing costs
Even if you do not have enough cash for a down payment if you are debt-free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the down payment†for your home by securing it against this asset.
#3 - SELLER HELP You may be able to find a seller to help you buy and finance your home
Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller†a lump-sum full amount for his or her home, you would pay monthly mortgage installments.
#4 - CASH DOWN You may be able to create a cash down payment without actually going into debt
By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.
#5 - CREDIT PROBLEMS You can buy a home even if you have problems with your credit rating
If you can come up with more than the minimum down payment or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller†take-back mortgage†could also help you in this situation.