Creative Ways To Afford Your Home
You want to buy a home in the Chicago area, but your income and savings make homebuying a challenge. You aren’t quite ready – or so it seems – to buy the home that you really want and desire. The first thing you should do is discuss your situation and seek suggestions from an experienced Chicago real estate lawyer. Here some other creative options you might consider:
1. Investigate down payment assistance programs conducted by local, state, and national agencies. These can provide grants or loans for all or part of your down payment. Take a look at the American Dream Down Payment Initiative from the Department of Housing and Urban Development.You can also get help and advice from the Nehemiah Corporation of America, a private agency that assists homeowners and prospective homeowners.
2. Find out if the seller will provide financing. Some sellers may be willing to finance all or part of the purchase price of the property and let you repay them over time, just as you would with a mortgage.
3. See if a family member will loan you the down payment or act as a co-signer for the mortgage. If you don’t have a long credit history, your lender may require a co-signer.
4. Consider a shared equity arrangement. Under such an arrangement, your family, friends, or even a third-party buys a “share” of the home and thus shares in any appreciation when the home is resold.
5. Ask about leasing with the option to buy. Renting the home for a year or so lets you save more for a down payment. And in some situations, owners will apply some of the rental fee toward your purchase price. If you lease to buy, you’ll usually have to pay a small, nonrefundable option fee to the owner.
6. If you have a good income and little debt, you may qualify for a short-term second mortgage that will allow you to make a higher down payment.
Real estate lawyers are not paid by commission, so they can represent you with no conflict of interest and offer the suggestions and legal protection you need in a real estate transaction. If you’re thinking about buying a home in the Chicago area, it’s imperative to obtain the advice and services of an experienced Chicago real estate lawyer as quickly as possible.
