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  • Writer's pictureJonathan Pablo

How to Buy a Cheap House in the USA, Especially in Long Beach?

Affordable homes are difficult to find these days. First-time buyers are not, however, priced out of the home market as a result.

Monthly mortgage payments are easily attainable for many consumers. Their only challenge is finding the cash for a down payment and closing costs.

Fortunately, there are many strategies to lower your down payment and closing fees so you can purchase a home without a significant initial hurdle.

You can combine these methods to find the most affordable approach for you to purchase a home. If you're fortunate or resourceful, you might be able to move in without having to make any out-of-pocket payments at all.

1. Use a mortgage with no down payment

A mortgage with no down payment might seem too good to be true. But two loan types specifically do that:

  • VA loan

  • A USDA loan

If you are eligible for either one, you will be well on your way to owning a home with little to no up-front payments.

VA loans

Only those who are currently serving in the military, veterans, or members of related groups, such as surviving spouses, are eligible for a VA loan. These mortgage loans, which are supported by the Department of Veterans Affairs, are designed to lower the cost of homeownership for people who have served in the military.

A USDA loan

Another zero-down option provided by the US Department of Agriculture is USDA loans. As the name suggests, you must be purchasing a home in a designated "rural area" to qualify for a USDA loan, this covers 97% of the U.S. geography.

Additionally, your household income must be low to medium for the area in which you plan to purchase. There are further requirements, but if you can overcome those two obstacles, you probably qualify.

2. Use a mortgage with little down payment

If you aren't qualified for VA or USDA loans, don't worry. You could be able to purchase a new home with just a 3% or 3.5% down payment, for example.

Credit-challenged home purchasers should consider an FHA loan. If your credit score is 580 or above, you could be able to buy a home with just a 3.5% down payment.

Be aware that the FHA mandates that borrowers pay mortgage insurance premiums (MIP) throughout the loan, which may prove to be more expensive in the long run. The good news is that owners of FHA loans can avoid MIP by later refinancing into a conventional loan.

3. Obtain an upfront loan, gift, grant, or DPA to pay for your expenses.

As was previously indicated, first-time homebuyers frequently qualify for assistance with their down payment and closing fees. Here's how it functions.

4. Mortgage loans and grants

Programs that help with down payments should be more well-known than they are. In the nation, there are hundreds, with at least one (and frequently more) covering each state or county.

You should research every DPA program available in your area and submit an application to the ones you believe would be of assistance. Search for programs online or get advice from your loan officer, realtor, or real estate agent.

Compared to before, there aren't nearly as many affordable, well-qualified short sales or foreclosures on the market. However, if you browse online or scan the neighborhood for real estate signs, you can still find good offers.

You should familiarise yourself with the specifics before beginning the foreclosure or short sale process because it is a little more involved than the typical house-buying procedure.

To know more about the cheap houses for rent in Long Beach California visit

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