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Alternative Home-Buying Options For Non-Traditional Homebuyers

Whether you have a tight budget, or you’re simply a frugal individual, getting the best deal on your new home is always a top priority.  No regular folks aim to spend a fortune on their home, and some of us simply can’t afford much.  

Whatever the case may be, it’s always fulfilling to find a great deal.  Take the time now to learn about a few alternative roads to travel while seeking to purchase a new home, and consider paying less for your residential dreams to come true.  

Purchase a home in foreclosure 

There are various terms that all kind of lead to the same situation.  The words foreclosure, REO (real-estate owned), and non-performing note are all very similar in definition, and they are all great ways to get your hands on a property for cheap.  

A foreclosure means that the former owners of the property defaulted on their mortgage loan, and the bank reassumed ownership of the home.  You will get a bare bottom price for homes in foreclosure, but make sure you also get a thorough inspection.  

Invest your energies towards a short sale

When you invest in a short sale, you could pay as little as 50 percent of the total worth of the property.  A short sale occurs when homeowners get permission from the lender to sell the property for a fraction of the remaining mortgage.  

It’s important to keep in mind that when you purchase a home on a short sale or foreclosure, it may not be in the best repair.  These sales are often “as-is,” so make sure the property is in manageable condition before signing any contracts.  

Consider buying a tiny home 

The tiny home revolution is upon us, as the younger generation has embraced the idea of minimalism.  You don’t really need 3,000 square feet to live happily inside of your home. You can purchase a tiny home for less than $50,000, and have all the comfort you need in a much more manageable package.  

Buy a fixer upper

If you don’t mind doing a little home improvement, it may be in your best interest to invest in a fixer upper.  As long as the fixes on the home are simple, purchasing a house that isn’t “pretty” doesn’t mean you didn’t find a gem.  

Look for community programs aimed towards housing

There are thousands of various community programs around the nation with the aim towards housing those who don’t have the best financial history. 

If you have bad credit and a mediocre income, it doesn’t make you any less worthy of a stable home.  Check with HUD and your local community center for a list of viable options.