Homeowners On A Budget

Almost half of Americans living in a rental property worry they will never be able to purchase a home. According to a study by Qualtrics, 48% of renters are concerned about being able to afford a home. The highest percentage of home septics is among Gen X, who have already reached their mid-50s. Needless to say, it is an alarming figure that reveals serious disparities between the American dream and the American financial situation. 

Can you be a homeowner when you have a tight budget? The answer appears to be no. However, we beg to disagree. A tight budget can make things tough. For a start, it means you may not be able to apply for a mortgage at the median house price of $428,000. But does it mean that homeownership is impossible? Here are ideas to make homeownership possible despite a shoestring budget. 

Look for non-conventional properties

The average family home is around 2,300 square feet. But did you know that you could find a cozy home under 1,200 square feet without compromising on comfort and quality of life? Indeed, properties such as Top Notch Homes, which are small mobile homes, are a fantastic solution for homeowners concerned about high costs. With a starting price of about $62,000, almost 7 times less expensive than a modern house, it is easy to take your first step on the property ladder. 

Make money out of your home

Your home could pay for itself or at least generate an income that can go toward your mortgage payments. For instance, you could turn a room into a rental opportunity. Not sure where to start? We’ve got you covered: 

You can rent out a space in your garage for cars. It is a great option if you live near large companies, so commuters can park there and avoid parking fines. 

You can also turn the garage into a storage area. People could store furniture or items while they are in the process of moving homes. 

If you have a spare bedroom, it could be promoted on Airbnb for tourists. Use an AirBNB digital guidebook to give your visitors a guide on how to use the space properly.

Finally, if your home has a unique feature or decor, you could even lease it to film studios as a set. You will need to leave the house for the duration of filming. Thankfully, film studios rarely book a location for an extended period of time.  

Find homeownership support

According to government research, $10,000 grants to first-time home buyers can boost homeownership by over a third. So, Congress has been looking at introducing programs dedicated to supporting first-time buyers.

The Downpayment Toward Equity Act awards first-time buyers up to $25,000. The monies can be repurposed as a downpayment. But you can also use it to pay for closing costs or even lower mortgage rates. 

The Homebuyer.com forgivable mortgage acts like a housing grant, giving cash for a down payment of up to 5% of the house price. Buyers do not need to repay it. 

It is worth investigating the grants you might be eligible for. Additionally, local governments also have unique programs for first-time buyers. 

Can you become a homeowner even if you can’t afford properties at the current median market price? If you are willing to think outside the box and follow less conventional strategies, you may be able to step on the property ladder much sooner than expected!