Your First Home Can Be Your Dream Home, Here’s How
When you think of the words “starter home”, what comes to mind?
“Cheap”, “run-down” and “bad investment” are all popular associations with the term. However, Millennials are turning the notion of a starter home on its head. If you’re buying your first home for the long run, here are some ways you can get the home you really want, right away.
Goodbye, 20% Down
Contrary to popular belief, you don’t need to fork out 20% of a home’s value for a down payment. In fact, you don’t even need half that. For an FHA loan, you’ll need just 3.5%. When using a conventional loan, you can start as low as just 3% down. This not only leaves you with more appealing home options, but also gives you more money to play with for renovations. And speaking of…
Want to get the new home feel in an established neighborhood without having to fork over extra money or DIY projects after closing? Renovation loans will allow you to purchase a home and roll the cost of that new kitchen, bathroom, windows and even additions into the mortgage upfront. With both Conventional and FHA options available, qualifying will easily fit your needs.
Is it a dream home that you want, or a dream location? You have to decide what you’re willing to sacrifice in order to get your dream home. For instance, if you’ve always wanted to live in the heart of New York City, then your dream home may look more like a 1,000 square foot condo than a 4,000 square foot cabin. Everyone’s dream space is different. Making a list of priorities will help you isolate what exactly puts the “dream” in dream home.
Who Cares If It’s Ugly?
Don’t judge a book by its cover. This old adage holds equally true when it comes to buying a home. It’s important to focus more on what’s inside than outside, because the easiest aspects to fix in a home are the aesthetics. Do your very best to look past the hot pink door and concentrate on what’s more difficult to fix, like plumbing or insulation. Doors can be painted for next to nothing; plumbing, on the other hand, could break the bank.
Bottom line, your first home doesn’t have to be a starter home. Such a life-changing investment should be something you can be proud of long-term. Keep these four points in mind, and you’ll find that your dream home can definitely be in reach.
Convinced you want to go after your dream home now, but not sure if it’s in the stars (aka the bank)? Check out our tips on how to buy a home when you think you can’t afford it.