Homeownership is the road for most people to achieve their financial goals and for many, homeownership is the route to financial security. The only problem is that houses are incredibly expensive purchases, so expensive that many people are left feeling like they don’t have the money to purchase a home, even if they want. But the truth is, you need a lot less money to buy a house than you might think. Here are a few tips and tricks that you can use to afford a home, even when your budget is tight.

Go Through a Mortgage Assistance Program

The first thing that you can do to afford a home when your budget is tight is to go through a mortgage assistance program for financial support. There are many different types of mortgage assistance offered by both state and federal governments to help homeowners and potential homeowners afford the cost of homeownership. From working on refinancing options with better interest rebates and or lower payments, to direct financial aid and grants to help you make your payments, these mortgage assistance programs are there to help people with tight budgets with the costs of homeownership.

Get the Best Interest Rate

Another crucial key to affording a home when your budget is tight is getting the best, lowest interest rate possible. When you get a mortgage loan, your loan amount will accrue interest overtime, leading to a larger overall payment. The lower your interest rate, the less total you are going to pay on your house and mortgage. You may be able to negotiate a mortgage rate lower than what the lender offers you. Always try your best to lower your interest rate, every tenth of a percent can make a huge difference for your bottom-line.

House Hack

The final way that you can afford a home when your budget is tight is to try a method called house hacking. House hacking is where you purchase a multi unit home, live in one unit, and use the rental income from the other units to pay the cost of your mortgage. The best part about house hacking is that when done right, your home costs will be zero, with the rental income completely covering your mortgage payments . At the very least, it can help lower your out-of-pocket costs significantly, while allowing you to grow equity in a home.

Homeownership is one of the greatest tools available to average Americans for wealth building. But home prices can leave many people unable to afford the costs. Try utilizing these three tips to ensure that you can afford a home even when your budget is tight.

Check out this article on other obstacles that can get in the way of your home purchase !