How to Raise Money to Buy a House

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Buying a house can be a scary experience. The purchase will probably be the largest financial commitment you will ever make in your life. The traditional way is to go to your bank and ask for a loan that you will pay back over 15 to 30 years. The problem is that most banks are fairly stingy with their lending today. One solution for this dilemma is to purchase your dream home with some help from a program that encourages home ownership.


Step 1

Explore U.S. Government-backed home buying programs. As a first-time buyer, you may have access to a Federal Housing Administration (FHA) program offering loans for a down payment of 3.5 percent of the purchase price and letting you finance most closing costs and fees. FHA also has loan programs for teachers and public safety employees, people buying homes in need of repair, and more. The Department of Agriculture has a program that allows persons living under certain income levels the ability to purchase or build a home in many rural areas. The Department of Veteran Affairs offers a home loan guaranty program for U.S. military veterans and their spouses that does not require a down payment.

Step 2

Explore local-level home buying programs. Most states and large cities have programs offering loans and grants to purchase homes in areas they want to see revitalized.

Step 3

Access a downpayment assistance program. These programs exist to help potential home buyers get over the hump of the making the original down payment on a purchase. Talk to your lender to see if you qualify for one of these programs.

Step 4

Consider a community land trust property. Land trusts are non-profit organizations that manage property in areas they want to see protected or revitalized. They sell homes to people who share their goal of keeping the property in good condition. You can buy one of these properties at a lower rate because you are only buying the house, not the land. When you decide to sell, there will be limits on your profit and to whom you can sell.


About the Author

Stan Smith is a writer based in Nashville. He has been a journalist with "The Tennessean" and "The Northern Virginia Daily" since 1985 covering crime, corruption and sports. Stan holds a Bachelor of Arts in German history from The University of the South and is working on his first novel.

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