There are several benefits to owning your own home, but people are finding it increasingly difficult to afford one. It’s even harder to finance your dream home.
The truth is, Manhattan Beach homes don’t have to wait until retirement.
Imagine if you could live in a vacation house full time.
Read on to learn how to finance your very own Manhattan Beach home and live every day like a vacation.
1. Renovate Your Current Home
Before you move into a new home, most people sell their current one. In fact, the house you live in now can play a big role in paying off your dream home.
Property tends to appreciate over time, so chances are that your current home is worth more than it was when you first bought it.
You can increase the amount you get in exchange even more by renovating your house to sell for more.
Certain renovations add greater value to a home. Consider repainting, putting in nicer floors, replacing the countertops, or putting in new cabinets. Homebuyers know they’ll have to put maintenance into a house eventually. Doing this before selling, such as replacing the roof, can add value.
You can also modernize the home before selling.
Right now, houses with solar panels are selling for 4.1% more than houses without. That’s because buyers will save money on utilities in the long run. You can even use the money you save on utilities throughout the rest of your stay to finance your new home.
Does your current home have two garages or a large garage and a driveway? Consider remodeling the garage into a second studio home on your property.
2. Switch Up Your Lifestyle
One of the best tips for financing a home in Manhattan Beach is to save up money before you buy it.
There are several ways to save up money if you’re willing to switch up your lifestyle a bit. Consider eating out less and stick to free entertainment for a little while.
You can continue these changes even after moving to contribute to your mortgage.
Yearly vacations add up. Naturally, a great way to save thousands is to take smaller vacations or forfeit a vacation for a year or two. Living in Manhattan Beach homes is a vacation in of itself, so you won’t be missing too much.
3. Sell Valuable Assets
Another option for financing your new beach home is to consider selling your valuable assets.
This can include items from extra vehicles to fine jewelry and heirlooms. What’s a necklace compared to living out life in the home of your dreams?
If you don’t own anything of high value, you can still make several hundred holding the occasional garage sale. In fact, online marketplaces like Facebook and eBay have made it even easier to sell items you don’t need or use anymore.
4. Look Into Down Payment Assistant Programs
Once you have an idea of how much money you have to finance your California beach home, you can determine how much help you need from outside sources.
Each state has its own grants and down payment assistance programs intended to help homebuyers. From first-time buyers to veterans, there’s a variety available that you might be eligible for.
5. Get a Bridge Loan
If you plan on buying a home in Manhattan Beach, a loan isn’t an uncommon way to pay for it.
If you’ve paid off your mortgage on your current home, then obtaining a second should be relatively easy. Even if you haven’t, you can still qualify for a second.
One such loan that makes this possible is a bridge loan. A bridge loan essentially combines your old and new mortgages into one payment until you sell or pay off your previous home. This makes it easier for you to keep track of payments.
Due to the size of bridge loans, there are some eligibility requirements you have to meet, such as having a good credit score.
6. Get a Loan From the Government
If you require more financial help, you’re in luck. The government offers several loans to those who are eligible, and they can afford to give you more.
One such loan is an FHA loan. With this loan, your downpayment can be as low as 3.5% instead of the standard 20%.
Another government-run loan is the VA loan for veterans. Depending on your length of service, you’re can be eligible for no downpayment at all.
7. Fixed-Rate Vs. Adjustable-Rate Mortgages
A key step in Manhattan Beach home financing is understanding the types of mortgages available.
If you choose a more standard mortgage over the loans discussed above, there are fixed-rate and adjustable-rate mortgages to choose from. Both of these will generally require a 20% downpayment.
A fixed-rate mortgage is the more common of the two as it involves paying the same interest rate and payment every month. It usually takes 15 or more years to pay off.
An adjustable-rate mortgage, on the other hand, is good for people who don’t want to stay in the same place for so long. These loans have lower rates for a few years, and then the interest rates become susceptible to the economy’s fluctuations. This means your monthly payments can increase, but it’s a good deal if you plan on moving before that happens.
Manhattan Beach Homes Await You
Owning the home of your dreams is possible, and it doesn’t have to wait until retirement.
There are many ways to save up the money you need and several loans you could be eligible for. Choosing the right mortgage for your financial situation and long-term plans can make all the difference.
If you’re looking for your dream home, check out our collection of Manhattan Beach homes today.