General Question

joy20's avatar

How can I get money to buy a 30,000 dollar home?

Asked by joy20 (106 points ) January 15th, 2010

I have been renting for years and I am throwing away money. I found the perfect house for my dog and I and it cost 30,000. I have good credit but I am without a work record…I resigned from my job to take care of my grandpa while he was passing away. Do you know of any loans that I should apply for? Or do you know of any grants? I am young, on my own, and I have been since I was fourteen. Any ideas??? PLEASE RESPOND Also I know that if I buy a home now, I will recieve the first time home buyers incentive…which I could put towards my new home!

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24 Answers

mowens's avatar

I could be wrong, but I think that you need to have an income for a home loan.

I’ve never bought a home, but with a car, I know the first thing they ask is how much do you make?

fireinthepriory's avatar

If you have no income, how do you pay your rent? If you get a job, even a minimum wage one, it’ll increase your chances of getting a homeowners loan. Otherwise how do you expect to pay your loan payments?

Likeradar's avatar

Do you live in the US? Just wondering where this magical place is that you can buy a home for 30,000!

CyanoticWasp's avatar

Are you serious? A $30,000 home (in the US, and priced in US dollars) is nothing at all. You should be able to qualify for a loan for that amount with very little trouble, if you have any kind of credit at all.

Depending on the rent you’re currently paying, you ought to talk to the seller of this property and see about the possibility of purchasing the home under a land contract. In that arrangement, the seller holds title to the home until you finish paying for it at an agreed-upon rate and over a specified term.

For example, using this property (but not running the numbers except for illustration—your numbers would vary) let’s say that you agree on a land contract to purchase the home over 100 months of equal payments. Because you’ll end up paying for the house in more than 8 years from now, it’s reasonable for the seller to demand somewhat more than $30,000, since he absorbs some risk that you may not complete the contract and he may have to either sue for the balance or sue for the return of his property if you don’t pay. So let’s say that he elects to sell for $40,000 over that term, instead of just $30 K (and instead of running an interest rate scenario, which would also be valid).

So your payments are $400 per month times 100 months = $40,000. Simple, straightforward, and done every day. Talk to an attorney about drawing up the papers. That won’t cost an arm and a leg and it will make for an agreement that both of you can live with, including provisions in case he dies before the completion of the contract, or you do, or one of you defaults, etc.

Judi's avatar

I’m a couple of years out of the loop, but I think that there are laws that prohibit discrimination in housing (therefore lending) based on source of income. You must have some income somewhere to make the rent where you are “throwing away money.” If you can come op with a down payment and closing costs, For an FHA loan that should be less than 10%) I see no reason why any mortgage broker wouldn’t want to help you get a loan.

Judi's avatar

@CyanoticWasp ; I’m sure a seller would charge interest in that scenario. It would not make since not to.

trailsillustrated's avatar

where can you buy a house for 30k??????? This a transportable home? then no you can’t get loans for those

evil2's avatar

prostitution usually works, or sellng drugs or maybe i dont know get a job….

Snarp's avatar

There are many places where you can get a home for $30k in the U.S. Usually they are small, often in more rural areas, or perhaps in need of serious maintenance, but it’s not unheard of, particularly in today’s real estate market.

Snarp's avatar

You know who is a good source for information about this? ACORN. Also the FHA. You could just go find a lender and see what they can do. A credit union will often offer the best rates, so maybe start there. Most places will run your credit to see what they can qualify you for free of charge.

jaytkay's avatar

A friend of mine took a 2nd job specifically to buy her condo. She worked nights as a grocery store cashier and put every dime of that income towards the down payment.

BoBo1946's avatar

First Time Home Buyer $8K
www.GovernmentHomeLoans.us 8K Tax Credit Low Rates FHA VA USDA Loans Up to $729,750 Min. Score 620

eenerweiner's avatar

When I bought my home, I had just got a new job and could not be preapproved for a loan until I had been working there 6 weeks. My bank also had a special loan officer that worked mainly with first time homebuyers and he was very helpful in explaining what I needed to do or not do to improve my credit and increase the amount I was preappoved for. So I suggest just talking to a loan person at your bank or credit union.

Snarp's avatar

You might also want to analyze whether you are really “throwing away money”. That’s a common belief, but it is not always accurate. How much is your rent? What do you get for that? Are you getting that much more with the house? Do you need what you are getting? (i.e. does the house have more space than you really need, do you intend to do anything with the yard). Remember that when you buy a home you take on all the maintenance expenses, yard upkeep, painting, heating, cooling, electrical, hot water, and plumbing repairs. You are also going to have to have homeowner’s insurance, which is pretty pricey. Then there’s property taxes, and let’s not forget interest on the mortgage. If you pay the required amount on most mortgages you will pay more in interest than you paid for the house. Sometimes much more. And finally, there’s that whole investment aspect. In general a new house has about a thirty year life expectancy. At that point you are going to need major repairs or renovations, and many buyers would rather buy a new house with all the latest design and technology, and probably a bigger one. In other words, a new house bought today simply won’t appreciate the way many people think it will in the long term. Unless of course we get into another overheated real estate bubble and you are lucky enough to sell at the top of it. And frankly, a house that goes for $30k today is not likely to have a great future as far as appreciation goes unless you put a lot of money into it.

A house can be a great investment, but frankly there’s nothing wrong with renting. A lot of the focus on home ownership is driven by the fact that home ownership is an essential driving force of our economy and essentially is what got us out of the depression because people buying their own homes meant they also needed cars, refrigerators, stoves, etc.

Judi's avatar

@Snarp ; I was thinking about how renters don’t always realize how good they have it when I heard that one of my maintenance guys was going into an apartment to change someones light bulb. I’m glad to do it, It is one of the benefits of renting.

PandoraBoxx's avatar

Buying a house is one thing, affording to maintain it is another.

You do have to pass a credit check and have either income or assets to borrow money for a house. If you’ve been paying rent, you should have a credit history.

Haleth's avatar

It would make more sense for you to buy a house when you’re in a secure position. You might think you’re “throwing away money” now on rent, but if you end up with a high-interest loan, you could end up with your mortgage payments mostly going toward the interest on your loan instead of the balance.

Another thing to think about is that missing payments on a mortgage is a lot worse than not paying your rent. If you can’t pay your rent, your landlord can begin eviction proceedings against you but you usually have a little time to find a new place. If you don’t pay your mortgage, your house might be foreclosed, which will really mess up your credit. A good credit score seems to be your best asset right now.

You’ll be in a better position if you get a job and save up enough money to cover all of your expenses for a few months, plus several thousand dollars for a down payment. (If your house were more expensive like many houses in the US, you’d want to save up several tens of thousands of dollars.) The larger your down payment, the lower your monthly payments. You might also want to save up enough to afford a larger house. There are plenty of reasons to have the space, like the fact that your house will be more valuable in the long run, or that it may not just always be you and your dog. You could also make money by renting out an extra room. That contribution could help you build equity faster.

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AshlynM's avatar

In order to get a loan, you need some sort of income. They may look at your other assets to determine if that;s enough to pay the loan back, but if you have no steady income, the most likely you’re out of luck.

Otherwise, look into selling some of your belongings,something of high value. Or invest some money in the stock market.

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