Tax Auctions
Often homes are put up for auction by counties, states or the federal government for non-payment of property or income taxes. With tax auctions, bidding starts at the amount owed for the back taxes on the property.
If there isn’t a lot of competition for the auction, you can buy a home for as little as a few thousand dollars in some cases, especially in more rural areas. No mortgage, no monthly payments.
Mobile Homes
Many mobile home parks sell empty mobile homes on their lots with very small down payments and in-house financing. You do have to pay lot rent in addition to your home payment, but this still usually equates to less than renting a house or apartment.
Once the mobile home is paid for, you can move it anywhere you like, or simply continue paying the low lot rent at its current location.
Rent to Own
Rent to own programs for houses is also an option. Rent to own programs varies from state to state, as regulations differ. You can usually move in for a low down payment.
Sometimes only a portion of the rent is applied to the home purchase, and sometimes the entire monthly amount is applied to the purchase price. You continue to live in the home as if you are renting, but at the end of the contract, you own the home outright.
Weighing the Options
You should carefully consider your options for buying a home. Which route you take will depend on your credit, your rental history, and your current financial situation. If you have several thousand dollars saved up toward a home purchase but don’t have the credit for a traditional mortgage, a HUD or tax auction may be your best bet.
If you have credit too poor for a mortgage but excellent rental history, a rent-to-own or mobile home maybe your best option.
Susan McCullah is an established writer who has created dozens of informative articles about credit scoring, identity theft, budgeting, taxes, debt, and finance. She has worked in the Credit Reporting industry for 15+ years and is FCRA certified. Susan regularly conducts in-person presentations and webinars on the topics of credit scoring formulation, raising credit scores, and identity theft.
