If you’re like most renters, you’ve probably given up hope of being able to search Irvine real estate or homes for sale to purchase your first piece of real estate. But before you throw in the towel, take some time to evaluate your rent expenses versus a home loan payment after all tax deductions. After thoroughly evaluating both alternatives, you still feel a mortgage loan is beyond the reach of your monthly income, don’t give up complete hope. You have many other creative alternatives to help you conquer a devastating loan payment.
One way to qualify for a property in an upscale neighborhood is to search for potential roommates who will rent from you. With the right situation, the income received from your roommates could reduce up to half of your monthly loan payment and utilities. After taking into consideration all tax deductions and profit from equity, you have a good opportunity to make a profit. When the loan is paid in full, you benefit by owning real estate free and clear of any lien or encumbrance. Renters from all circumstances, single or married, have taken strategic steps and opportunities to make their dream of home ownership a reality. Let’s explore some other avenues:
1) Add an income producing guest quarters to your home.
2) Lower your monthly payments by taking advantage of an adjustable rate mortgage. However with the current disaster in the mortgage industry, it’s wise to seek the counsel of the reputable loan agent or real estate attorney before committing yourself to this type of loan.
3) Lower your monthly loan payments with a graduated payment mortgage.
4) Apply for a loan with a balloon payment to slash your monthly loan costs.
5) Research the option of buying a duplex, triplex, or other property that provides monthly income to help offset your monthly mortgage expenses.
6) Check with a reputable loan representative to see if your region offers a mortgage credit certificate program (MCC). This federal program is set up to assist homeowners with their monthly mortgage up to $2,000 per year.
7) Add a part time job to bring additional income to supplement your payments.
Talk to your employer about increasing your salary or offering you housing assistance.
9) Explore the option of buying a property together with a family member or close friend.
10) Consider the option of buying down the interest rate.
11) Explore the alternative of taking over a seller’s existing low interest FHA or VA loan.
12) Assume a lower equity adjustable rate loan.
Most of the time, the above strategies help lower your monthly payments or increase your available cash. However if you really want to leverage your ability to buy a better home, trying to prioritize and budget your income and expenses.
One exercise to help you prioritize your budget is to write down all your regular monthly expenses to see where you spend the majority of your income. Although most renters long to own a property, they expend the majority of their monthly income towards non-appreciating costs such as the latest automobiles, hi-definition TV’s, and concerts. By simply spending time re-evaluating your monthly budget and cutting out unnecessary expenses, you’ll increase the odds of being able to search Irvine real estate and homes for sale to find your dream property!
