What is the best way to buy a house without any cash?
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M$7 Answers
Other than this, you can also go talk to various banks and try to find rental property, such as a small apartment building or duplex or even an RV park (if you don't mind living in an RV), that has been foreclosed on. Once the bank takes over the property, they do not keep the rental income that is generated while they have control of the property, so that income goes to the next buyer to help cover fees, closing costs, and down payment. Whatever extra comes in goes in your pocket. This is what all those "cash at closing" real estate investment programs are about. If you are able to get your hands on a multi-resident property, you would be able to live there "rent-free" and simply run the property.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
First of all, everyone should be given the right to own a home, of course not everybody would be living in a mansion, but everyone should have the option to buy a home. EVERYBODY DESERVES THE RIGHT! The cost of home ownership has skyrocketed in the past few decades and paying $100,000 for a home (which is actually a decent price these days) is absolutely LUDICROUS! For the laymen out there, that's approximately $1,000 per month, depending on the interest rate. That's a large pill to swallow every month. Now, they are making the monthly payments lower, but the length of the note longer. These days, you can get a 50 year mortage. FIFTY YEARS! That's more than half a person's life. That is LUDICROUS! I can't imagine paying a large monthly payment for fifty years. You know, I'm hoping to be dead in fifty years, actually.
The reality of the situation is there will always have to be poor people. What do you think will happen if everyone goes to college and gets a really good job allowing them the right to homeownerhip? What would happen? Well, there would be nobody to serve you your Big Mac at McDonalds. There would be nobody to change your oil. The higher income people would actually have to do a their own dirty work. We all NEED "low income" people. Okay, so now that we have established the fact that poor people will always be around and that we need these people, why do these people not deserve home ownership? I mean, that's just cruel if you ask me. Everyone deserves a home. I guess we should just take those "low lifes" and sweep em under the rug. They are good enough to change my oil, but not good enough to own a home? Ridiculous!
The problem here is that buying a home is just too darn expensive anymore. Home builders take postage stamp sized lots and put up a home four times the size needed and sell for a huge profit. Where's the housing for lower incomes? Hmmmm.....there isn't any because the lower income people are expected to throw their money away renting so the fat cats can afford those nice houses and it's a big load of BS.
There's one more thing I want to point out and that is the fact that, honestly, little things that break around the home are really not that hard to fix if you have a lick of sense. As a young 20-something girl, I fixed my AC by going out and looking at the problem, noticing the burnt end of a bundle of wires, and replacing that bundle of wires. It's not that difficult if you just use a little common sense. Of course, normally only the lower incomes have such common sense due to the necessity.
Keep in mind that your rules are not everyone's rules. Many people have a good life and nice home without ever having a large savings account. Being low income or poor does not exclude owning a home and having a good healthy retirement. I think each person is able to decide whether or not home ownership is a suitable goal in their life. The phrase "better yourself" implies that people with money are somehow better than people without, which, of course, is preposterous. You say I absolutely should not be buying a home, I cannot imagine you really mean that, no one can make that decision but me. Thank you for your time and attention.
I saw a while back that the tip was already paid. Obviously, it's not all about tips.
I hope every goes well for your home purchase. My sister just bought a place, and I can't wait until we can buy one. Enjoy!
This is not a chat room.
If you can't put away money for retirement, then you absolutely should not be buying a house. Like I said, not everyone should own a home, which is why I don't. I'm realistic about the fact that some people can't afford homes *because* I know low-income people, some of whom have made bad situations worse by buying a house. Someone who can't put away 15 cents on a dollar should not take out an $100k loan. You may argue that a mortgage doesn't cost more than rent, but the difference is, if you can't pay your rent or if you have to move for work, you can move out and stay with friends. If you owe $100k on a house, it's not so simple. Debt constitutes risk where a monthly rent bill does not. You cannot compare rent payments to mortgage payments as apples to apples.
Of course not. I never said being poor means you can't buy a house. I said, "Someone with low income who wants to buy a house should do it the slow, steady way: save a little bit at a time until they have enough cash for an emergency fund and a decent down payment. That's assuming this person has no debts and is already putting away 15% for retirement. Not everyone should own a home."
If I have a choice between retiring and owning a home, I'll choose retiring every time. If you want to work until you are 85, that's your call.
As a retired person, with adequate experience and income to be a homeowner, I did not ask permission to buy a house or ask if I could, I asked What is the BEST way.
You have not answered that at all. Your opinion has been noted. The tip has already been assigned. Thank you for your effort.
Where I live, in the North, there are houses for much less than 100K. I can buy the house I am renting for under about 45K that means my monthly payment including taxes and insurance would be less than what I pay now in rent,and I have been paying that for 5 years. It is not reasonable to simply say poor people cannot be homeowners.
You think low income people can put away 15% for retirement? May I suggest you befriend some low income people so you know more about the realities, and don't inadvertently insult good people, or make a bad situation worse.
- There is no basis for your argument that everyone deserves a house. You want to to be true, but it's not. There is no constitutional or even religious principle to back you up.
- We don't need people to be poor. America would run just fine if all the poor people found a way to become rich. Who would serve fast food? There are two options: people who are too young to have completed college yet (which is when I worked fast food), or no one would be willing, and that low-wage job would go away. If everyone were educated enough to earn 6 figures, and college students weren't interested in working, then entrepreneurs would keep raising the pay for fast-food workers until it was worth it to work fast food. That means that fast food prices would rise (hello, $20 big mac), but who cares? We'd all be rich. And the person working at McDonald's would be just as professional as the person selling high-end clothing.
- Businesses are intended to make profits. The only way to keep costs low is competition. Maybe with less bureaucracy, more people would go into the house-building business, and the competition would drive prices down. However, when you choose to build a housing development, you take on a lot of risk with no income from the houses for years. Houses are going to be expensive, because no one would take such huge risks without huge rewards.
- I'm so glad that you fix your own problems around the house. My dad was able to repair plumbing, toilets, garbage disposals, washers, dryers, heaters, air conditioners, garage doors, as well as the car. So if you can fix your own car for cheap, then you can fix your own house. Not everyone can.
You say that no matter how poor a person is, he deserves to own a home, and we should be glad he will be poor all his life so we can get cheap fast food. I say that if you want to be rich, don't buy things you can't afford, and better yourself so you can bring in a great income. Then you can afford a house. I strongly recommend the book The Millionaire Next Door. It explains how most rich in America didn't start rich but chose to live well below their means so that one day they could become rich.
By "better yourself," I mean acquire a marketable skill that will bring in more money. How much you make is determined by what you are worth in the market, not necessary how good, kind, friendly, intelligent, etc. you are. Even someone with a Ph.D. is constantly bettering himself by reading and attending occasional classes.
Someone who is low income and has no cash is not in a good position to buy a home, as any financial adviser can tell you. Obviously, you are not willing to wait for when you are in a better position. I just hope you don't make life more stressful than it need be.
There used to be a couple programs where the seller would pay the buyer's closing costs. My husband and I used these programs, and they required no money down (although we did have some money down that we used, we didn't need it).
Due to the economic issues, and the sticky issues that Fannie Mae got into over the last two years, those programs have been shut down.
However, you do have a couple options.
There are rent-to-buy options out there, where you rent a house for a fixed period of time (2-5 years) and some of the monthly payment goes into equity for eventually buying the house. But you need to be careful, because there are a lot of ways this can backfire. Important to get sound financial and legal advice if you choose this option. Here is a good story that summarizes the practice and gives some things to look out for:
http://www.forbes.com/2009/03/02/renting-mortgage-property-lifestyle-real-estate_rent_to_buy.html
Your other option is to trim your expenses so you can save up a proper down payment. As others have said (and I can agree-been a homeowner for 3 years now), houses are more expensive than what you pay in mortgage and taxes.
You could either continue to live in an apartment, or find a rental house (without the rent-to-buy option), while you get your savings together. That way you make sure you can afford a house and don't run the risk of foreclosure.
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M$There are also House Sitting Jobs...
People Pay people to maintain and care for a house while its on the market and to prevent theft and Squatters...
Sqwatting is another option.. But it should not be the first options. Hud Housing, living with a friend working for pay.. helping them out.. Pet Sitting and House sitting...
http://www.housecarers.com/housesitting_jobs.cfm
http://www.lipmagazine.org/articles/featwiegand_squat.shtml
http://www.howstuffworks.com/squatting.htm
Building a primitive shelter: debris hut
http://www.natureskills.com/primitive_shelter.html
Primative Homes
http://www.ssrsi.org/sr2/Homes/primhome.htm
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
Your answer seems to be how to obtain housing with little or no money, and it is an imaginative answer...but my question is how to Buy a house with no cash for a down payment.
I gave you the other option, I am sorry you did not like it... I knew my responce was not gonna be the best responce, as someone beat me to it. But I posted what I did as that is valuable information as well, for options.
I didn't say I didn't like your response, it just doesn't the question I asked. I have a rental home now, have been here 5 years. I am looking to become a home Owner, not a survivalist..lol... but, Thanks.
There are always closing costs as you will get an Attorney to review the contract at closing. You have transfer costs for the deed that go to the Township or City your in. You just save on Bank costs. And the rent to own would also be under contract and new owners have to live by old contracts on real property. If not everytime a building changed hands everyone's lease would be void.
WOW, I didn't know that about the rents going into escrow for the next owner!! I will look into that.