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While (still) in a mortgage slump, what are some feasible alternative ways of homeownership?

News of home subsidy is on the downslope The Impending Doom of the 30-Year Mortgage, some alternatives are to borrow against your whole-life policy and borrow against your IRA 4 Alternatives to a traditional mortgage.

From what I'm hearing that many retirees may outlive their nest egg and that we shouldn't dip into our retirement (especially if the financing could swallow up the nest egg).

There are two more alternatives, like negotiating straight with the seller (but most sellers are not going to take this risk), and rent to own (this area can get really snakey since there's a long time between renting and owning at the actual owner's discretion)

Do you know of other alternatives that are feasible (less snakey and risky) that can be understood by the every day person?

Please add solutions that are feasible to everyone (non-military civilians alike).

 
Anonymous

Asked by Anonymous at 9:07 AM on Mar. 29, 2011 in Money & Work

This question is closed.
Answers (6)
  • I am a Realtor here in Ca. There are many city programs for those who do not make a lot of money. In our city it is under 45K. The city assists you in buying you home by giving you a down payment. There are many loan programs out there that can assist you with as little as 3% down. Check with a lender in your city to see what programs are available. Additionally now is the time to buy, prices are very low which makes home ownership more obtainable.
    voni681

    Answer by voni681 at 11:50 AM on Mar. 30, 2011

  • We saved and put down 20 percent and bought a house within our means. Our first home was tiny but we paid it off quickly and made a few improvements and sold it. We took that and put it down on a nicer larger home. We paid that mortgage down and saved the 10 years we were in the house. We sold it and paid cash for our very large home we are in now. Took us 14 years to get in our dream home but over time we got there. We have never had cable or a TV. We don't eat out because I am an excellent cook we are savers not spenders makes it much easier to pay a house off with that mindset.
    Anonymous

    Answer by Anonymous at 10:01 AM on Mar. 29, 2011

  • I'll address the rent to own..even though you discarded it...first...just because some see it as feasible. This is a bad idea all the way around. If the actual owner has a mortgage on the home and defaults you are screwed..sure you can sue..but if there is a default there probably is no money to get. There can be a problem if the actual owner dies..if there is a will giving the property to someone else..you may be screwed. If the home is part of a trust...you may get screwed. IMO..there are too many ways for this to go wrong.

    As a former banker my advice is to save then buy. If you have 15-20% down, a job history longer than 2-3 yrs, very little debt and good credit you can buy a home. You may throw up your hands and say that is impossible. Not it isn't..it is a matter of resolve and responsiblity. If you cannot meet these simple and achievable goals you probably should not own.
    yourspecialkid

    Answer by yourspecialkid at 10:02 AM on Mar. 29, 2011

  • You should NEVER raid your long term retirement savings to buy a home...NEVER.
    yourspecialkid

    Answer by yourspecialkid at 10:02 AM on Mar. 29, 2011

  • If you are military you can use the VA loan and not have a down payment..I don't advise this though..unless you purchase a home much cheaper than you can afford. There are vets/mili members all over the place that are upside down on their homes right now.
    yourspecialkid

    Answer by yourspecialkid at 10:04 AM on Mar. 29, 2011

  • I'm really wanting to address civilians, due to the uncertainty of the recession. I really need an answer that fits everyone.

    I really wish that the military would except single moms. Single moms are the true heroes, and would definitely be much more productive than some of those Army soldiers IMO.
    Anonymous

    Comment by Anonymous (original poster) at 5:56 PM on Mar. 29, 2011

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