Looking for advice for my first home – I want to choose the most frugal option possible

 The Question:

My situation is a bit unique because I'm 36 and don't have a credit history. I've always lived with family and paid cash for my vehicles. 

Last spring I was supposed to buy a trailer and land from a friend's family but it fell through during the title search. I was going to use my life's savings and own it outright. 

Now I'm trying to figure out where to go from here. My parents always rented but decent, affordable, pet-friendly rentals are few and far between around here. I'd rather own my home if at all possible. I need to figure out what to aim for. 

Do I need to accept that a credit score is a necessary evil? I have money saved up for a down payment, my income is $2000 a month, and I don't have debt other than medical.  

Any advice would be appreciated!!

What did people say?

⇒ Elizabeth: Yep. Get you a card. Use it to earn the rewards (money) for things you are already buying!! Just pay it IN FULL every month ! It's not an evil unless you use it improperly!! I average a few hundred a year with rewards....and I put everything on my cards!

⇒ Barbara: Lots to think about. Your income is low and home ownership is expensive.

⇒ C Jaye: I started out with a $1500 mobile home in a mobile home park and remodeled it, cleaned, painted it ( in the most modern mobile home colors) and sold it for $10000. I then got another one and paid less cash but did more work. I sold that. Eventually I was able to find a rent to own house that was ugly but $60000. The owner had bought it at auction for $18000 and sold it to me for a down payment and monthly payments. I put $10000 down and paid him $250 per month and agreed to keep it insured, taxes paid, etc. when I had paid it down to $30000 I got a windfall and offered him $15000 to pay it off which he accepted. No credit, no mortgage.

⇒ Laura: Save and buy a duplex. Let the other half make your payments with rent.

⇒ Denise: Check out Dave Ramsey on U Tube and their website. They have exactly how to buy a house w/no credit score along with the lending institution that does it.

⇒ Angel: U need to sit down & figure out if u can afford a mortgage. Pluse property tax, home insurance, utilities. Pluse save for repairs & maintenance. Could u afford to replace to heater, ac, hot water tank, appliances, roof? Owning can be expensive.

⇒ Karen: If it's just you, buy a 2/1 bungalow. Accept it won't be everything you dreamed of. Honestly my home was perfect for me. Have it inspected use a home warranty for the first year so if anything breaks you have coverage. Furnish it with garage sales, thrift stores FB market place.

⇒ Kimberley: It's possible, but hard. I work at a bank and recommend having a credit card for 1 monthly bill that you already have (such as Netflix or phone). Set the bill to pay onto the cc automatically, then the cc to pay automatically. This is one way to slowly build credit. However, most mortgage lenders need at least 12 months of a specific credit type and mixed credit history, such as both revolving (credit cards/lines) and installment (car payments/loans). Smaller, local institutions may be a better place to call for advice as larger institutions will require a credit history.

Comments

Post a Comment

Popular posts from this blog

Even with unemployment and child support, I’m still around $400 short each month

 The Question: I never had any real issues with debt, always felt in control of it and nothing was too out of hand. But 2 years ago my child’s father took me to court and I not only had that burden, but also had to pay the mortgage on my own and all the utilities and bills (I didn’t receive any child support for a year after filing) and through that time I racked up serious credit card debt (about $40k).  I was doing “OK” but mostly paying minimum payments and more on them here and there when I could.  Then in July I got laid off of my job of 10 years. Even with unemployment and child support, I’m still around $400 short each month and that’s not buying food or necessities, or anything at all. I’ve interviewed at several places and applied to over 100 jobs so far. I feel like I’m in a rut at this point and I’m trying to figure out the best way to get out of this situation with advice that maybe others have that have gone through something similar.  TIA What did people say? ⇒ Tracy: Yo
Read more

I still hunt around for the best prices on everything and I can’t bring myself to buy a new car

The Question: I grew up poor. Like not having electricity, running water and only eating at school for stretches at a time poor. I broke the generational curse of poverty and it’s been 20+ years since I’ve struggled but because of my experience with poverty, I abhor waste and always feel  the need to be prepared.  Because of this when we bought our home we bought in the country and I made sure it had its own water source and abundant wildlife. I learned to can food and make all our meals from scratch (because it’s healthier and cheaper) and we save and eat all the left overs. I still hunt around for the best prices on everything and I can’t bring myself to buy a new car. (We have used cars we have kept running for almost two decades). The thought of spending thousands on a vehicle  makes me physically ill to even contemplate. Expensive vacations  give me the same anxiety. We’ll spend the money to visit our daughter who is active duty military, wherever the military may take her but an
Read more

I need suggestions on frugal foods that fit medical conditions

 The Question: I eat very low carb/keto to control diabetes without meds. I had a bowel obstruction and need to eat very low fiber to help things pass without getting stuck again for a week or two. Any suggestions on ideas of what I can eat that won't break the bank, spike my blood sugar or cause another obstruction? What did people say? ⇒ Donna: Make your own bone broth. I use it as a midafternoon snack. ⇒ Nicole: It sounds like you need a carnivore diet. It's fairly popular and fits what you are looking for. Basically eat unprocessed or minimally process full fat animal products. Double check with your dietitian on your specific needs but it's quite reasonable if you by Mark down meat, pork, eggs etc. I got a ton of steak at 3-4 each by figuring out where and when to shop. ⇒ Mims: I eat a low carb lifestyle because I'm trying to lose weight and get rid of inflammation. I eat eggs, ground beef, canned tuna and chicken mostly for my proteins. I just shop around for t
Read more