Does your dream of owning a house seem impossibly out of reach? It’s probably less far-fetched than you think. Check out these five hidden ways to save huge on your house payments.
There could be a special loan or financing program out there for you. Fixer-upper loans, USDA loans and Good Neighbor Next Door programs could help you get a home. Buy during the winter, take advantage of Energy Efficiency Mortgage programs and make extra payments to save even more. Keep reading to learn more about these loans and other methods to save on your dream house.
Save Money With 5 Hidden Homeowner Programs.
Fixer-Upper Loans
These loans are meant for you if you love to take on home renovation projects. HUD 203(k) loans are perfect for buyers who want to move into a fixer-upper. It enables you to borrow funds as part of your primary mortgage based on the estimated value of the finished upgrades. They’re backed by the FHA, so ensure you’re eligible for loans from them first.
USDA Loans
Look into a USDA loan if you’re in a rural area. It’s even available in certain regions of large cities like Los Angeles and San Francisco. The USDA oversees this loan program to encourage individuals to invest in and improve rural areas. Specifics of this loan vary depending on which bank or credit union you go through. The program has income limitations, so some people may not qualify. Contact your local USDA office for more details.
Good Neighbor Next Door
Who would have thought you could buy a home for half off? It’s possible through the Good Neighbor Next Door program! Select homes across the nation in revitalization areas each go up for bidding for a week. The main catch is you have to live there for at least 36 months. Another HUD program also lists houses for one dollar, so check back regularly for a potentially amazing deal.
Energy Efficiency Programs
An excellent long-term strategy to lower your payments is to enroll in an Energy Efficiency Mortgage (EEM) program. You can modify and extend your current home loan by investing in green energy or energy-efficiency improvements. Solar panels, new insulation and new windows are all potential options depending on your EEM’s coverage. Consider investing in energy efficiency upgrades, especially if you’re already in your dream home.
Buy During the Winter
While not technically a homeowner program, buying during winter months is an easy way to save on a new house. Most people want to move during the warmer months — don’t be like them! Dealing with the cold while moving can save you thousands or tens of thousands.
Make Extra Payments
You can pay more than the minimum each month on your home loan. Pay a little extra every so often to save big time in the long run. Cutting corners on your bills and putting any extra toward your house can add up quickly.
You deserve all of the financial freedom you can get. Owning a home is a huge undertaking, but you can get there with a little help. See which programs are right for you. If you qualify, why not take the leap?
