Contrary to popular belief, affordable homeownership is possible even in pricey locations!
While you may be tempted to only search for a smaller home in a more expensive neighborhood, it could be worth your time to think about multifamily housing! In a duplex, triplex, or four-plex home, you would live in one of the multiple units, renting out the others. This may mean your monthly mortgage payments would be covered by the rent of other tenants!
Tip: Be sure you look into multi-unit home financing, and thoroughly research the demands of being a landlord before committing to this living style.
Or think smaller!
Tiny houses are becoming increasingly popular, and though many lenders have turned away applications for this form of housing in the past, financing options are beginning to shift! There are lenders out there who are open to the idea. It wouldn’t hurt to explore this option if it interests you as a future homeowner!
Consider a co-borrower
Buying a home in a more expensive neighborhood may be a matter of simply pooling resources! If you’re able to co-borrow with another individual, whether friend or family, you might be able to purchase a better home than if you borrowed on your own.
Here are a couple of important details you should know about co-borrowing before you commit to this financing option:
- You and your co-borrower will need similar credit scores in order to qualify for most mortgages. The lower score will be the one that counts!
- Plan ahead for changes in your current plan. If one of you takes a financial hit or moves away, a previously solidified exit-plan will come in handy.