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Buying A Home – How To Qualify When There’s A High Mortgage

By Sarah P. Shimanski

If you’re like most renters, you’ve probably given up hope of owning any real estate. But before you throw in the towel, take some time to evaluate your rent expenses versus a home loan payment after all tax deductions. After thoroughly evaluating both alternatives, you still feel a mortgage loan is beyond the reach of your monthly income, don’t give up complete hope. You have many other creative alternatives to help you conquer a devastating loan payment.

One option to afford a home in a nice neighborhood is to seek out several roommates who pay you rent. If the circumstances work out, your rental income could cover over half of the mortgage payment and a significant portion of the utilities. After calculating tax benefits and increasing equity, it’s possible for you to make money. Additionally, when the loan is paid off, you would own an asset free of any liens and encumbrances. Time and time again, many singles and couples have taken advantage of this creative arrangement to enter the housing market. Other options to consider include:

1) Building a guest unit by converting a garage, then, or attic.

2) Slash your high monthly mortgage expense by signing up for an adjustable-rate mortgage. However, with the ongoing disaster surrounding home loans, it’s prudent to get the opinion of a competent loan representative or real estate attorney before you sign up for this option.

3) Cut your monthly loan commitment by applying for a graduated payment mortgage.

4) Apply for a loan with a balloon payment to slash your monthly loan costs.

5) Research the option of buying a duplex, triplex, or other property that provides monthly income to help offset your monthly mortgage expenses.

6) Check with a reputable loan representative to see if your region offers a mortgage credit certificate program (MCC). This federal program is set up to assist homeowners with their monthly mortgage up to $2,000 per year.

7) Consider the option of obtaining a part time job to increase your monthly income. This will alleviate any financial pressures to make your monthly mortgage payment, especially if your existing income barely covers your monthly expenses.

8) Ask your boss for a raise or housing aid.

9) Consider co-ownership with another friend or family member.

10) Speak to a mortgage agent about the alternative of an interest rate buy down.

11) Explore the alternative of taking over a seller’s existing low interest FHA or VA loan.

12) Acquire a low-equity rate buy down.

By using the above options, you can slash your monthly loan obligations and increase your cash flow. But if you are serious about increasing your ability to purchase a better house, practice good money management and budget your monthly income and expenditures.

A great technique to help you evaluate where you spend the majority of your money is to list every monthly expense on a sheet of paper. While many renters dream of owning a home, they allocate most of their cash towards a new vehicle, expensive stereo’s, eating out, and other similar cost that won’t appreciate in value. If you’re willing to discipline yourself to stay on a feasible budget, you’ll make significant progress towards home ownership.

Having trouble locating the perfect Orange homes for sale? Come and see what Orange Realtors can do to help you find your dream home.

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Article Citation
MLA Style Citation:
Shimanski, Sarah P. "Buying A Home – How To Qualify When There’s A High Mortgage." Buying A Home – How To Qualify When There’s A High Mortgage. 21 Jun. 2010. 11 Feb 2016 <>.

APA Style Citation:
Shimanski, S (2010, June 21). Buying A Home – How To Qualify When There’s A High Mortgage. Retrieved February 11, 2016, from

Chicago Style Citation:
Shimanski, Sarah P. "Buying A Home – How To Qualify When There’s A High Mortgage"

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