5 Ways To Finance The Dream House That You’ve Always Wanted

5 Ways To Finance The Dream House That You’ve Always Wanted

The average cost of a single-family home in America is skyrocketing. And according to recent data, nearly 20% of first-time buyers are turning to parents or other relatives for help with their down payment. But what other options exist? If you’re not looking for a handout, here are four ways suggested by The Acevedo Team to finance your dream house you’ve always wanted in Riverside.

1) Get an FHA Loan

The Federal Housing Administration has always been around to help aspiring homeowners buy their dream homes. They provide low-down-payment loans that are especially helpful for younger people just starting and great for veterans and other first-time buyers who can’t afford large down payments.

The borrower only needs a credit score of 580 or above to qualify for an FHA loan. You’ll need at least a three percent down payment as well as monthly mortgage insurance premiums.

2) Create an Emergency Fund and Start Saving as Early as Possible

One of the best things you can do to get your dream house is to start saving money for a down payment as soon as possible.

Start by creating three separate savings accounts for emergencies, another account labeled “home purchase,” and one last account with general savings goals like vacations or gifts. As you save more over time, split up the allocations between these different categories until they’re roughly equal in size. Then keep on contributing!

That way, even if something goes wrong during the process (like needing extra funds), you’ll have additional cash reserves.

3) Look Out for the Best Loan Deals

You need to keep several things in mind when looking for loans – the monthly payments, interest costs, and how long you’re going to take to pay it back. Different loan deals might be available from your bank or other financial institutions, so shop around!

Researching and comparing the loan options available to you is essential in the process.

4) Veterans Can Apply for a VA Loan

Veterans of the United States armed forces can apply for a VA loan to meet specific requirements. Private lenders offer these loans and are guaranteed by the Veterans Affairs (VA).

5) Create a Solid Credit History 

Lenders will look at your credit report to get an idea of how risky it would be to lend you money. You can improve your credit score by paying your bills on time, not carrying too much debt, and avoiding bankruptcy or foreclosure.

Buying and selling homes in Riverside has become considerably easy thanks to the services of The Acevedo Team. We offer quality real-estate services helping you find convenient solutions for all your home worries. Whether negotiating a real-estate deal or adding value to your home, you can count on us for everything. Schedule a free consultation now!