Buying a Home On a Tight Budget: What Can You Really Get?

Posted by Shawn Clayton on Friday, May 12th, 2017 at 11:04am.

Buying a Home on a Tight Budget When the budget is small, getting a house that's right may be a challenge––but that doesn't mean it can't be done. There are plenty of options in housing markets such as Bay Head, NJ for people who have small budgets, even when they want a waterfront property that really makes them happy and that they can love and enjoy for a long time.

By considering all the possibilities and exploring options that might not have been thought about before, the chances of getting a house that's a good fit is much higher. Before any buyer with a tight budget gives up on finding a house, they should carefully consider what they may be able to do with that particular budget.

How Tight is the Budget?

Tight budgets may mean different things to different people. For some, a tight budget could mean how many millions they can spend. For others, it could mean trying to buy a house on a fixed income or with lower-income jobs. No matter what it means to an individual buyer, consider just how tight the budget is and whether there are changes that can be made to create a larger budget. That way, the buyer has a better idea of what's realistic for them. In some cases, they can buy more than they think they can because of good credit, down payment assistance, or other important factors.

What Financing Options Are Available?

Getting down-payment help, a grant of some type, or working with a seller to provide financing instead of going through a bank are all ways to get financed on a home that might not otherwise be affordable or possible. In some cases, buyers can get help from friends or family, or they can buy a home with others they trust and all live together. That can mean extra income for consideration, which will raise the amount a person can borrow and make it easier for a buyer to get a great home. Naturally, though, it's important to know your finances and not borrow more than you can safely pay back.

Should You Be Fixing Up a Home?

A fixer-upper is another option for people who are thinking about buying a home but don't have a lot of money. These homes need work, but they're usually livable or can be made livable fairly easily. That's important to think about, because some of these homes are being sold for less than they are really worth and can be excellent deals for people who have skills to fix them properly. They can also be worked on over time, so there's no need to spend a lot of money on them right away. That's worth thinking about, since these homes can often be bought on very small budgets.

What About the Location?

Where you live greatly affects the cost of a home. Some places are simply much more expensive than others. Moving to an area of the country where prices are significantly lower than other areas can be a way to buy a home on a tight budget. Of course, finding jobs there matters as well, and some people can't or aren't willing to move. If it's an option, though, it's worth considering to make a small budget go for more money.

Shawn Clayton, Owner/Broker, REALTORĀ®

Jersey Shores Luxury Home Expert

Contact Shawn

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