Many Americans are starting to feel as if they will never be able to afford a house, especially in areas like San Francisco, New York, and even Miami.
While many people choose to rent instead, you can still afford a house when you're broke. Here are a few steps to take if you want to own your own home.
Weigh Your Options
If you live in an area that buying a house is cheaper than renting (even factoring in insurance and repairs), it may be your best option to buy a home instead of rent. When trying to afford a house when you're broke, you may think that moving is expensive, but it doesn't have to be.
Some expenses may come up in your first few months of owning a home, but that is to be expected. Think about it this way: If you typically rent for $1,500 a month and you buy a home that only costs $800 a month, you are already saving $700 every single month. If something breaks down, and it costs $500 to fix, you still get ahead by $200 by having your own home.
Now, owning a home isn't always cheaper, so it's best to weigh your options. However, in many areas, including my own, owning a home tends to fare better than renting.
Look Into Assistance to Afford a House
Every state has home buying programs that can help you afford a house when you're broke. While the assistance varies from state to state, it's still worth it to look into what yours offers. Some will help you secure a loan as a first-time home buyer, even if you are low-income.
Some states even offer grants to move into less desirable areas or moving into more deserted places. It's best to look into these programs to see what you qualify for, you may be able to get your home for a lot cheaper than you first thought. ...continue reading