In the Virgin Islands, home buyers don’t have to face serious debt when purchasing a home. The right plan could help them avoid common circumstances that lead to financial hardships. A local financial advisor presents a plan for buyers to purchase a home without accumulating significant debt.
Reviewing First-Time Buyers Programs
A first-time buyers program doesn’t require the buyer to provide a down payment. Typically, the buyer has excellent credit and won’t face any issues when obtaining a mortgage loan. The first-time buyers’ programs also present other benefits for the potential homeowners. The financial advisor helps the buyer review the programs more effectively.
Accumulating Half of the Listing Price
A beneficial strategy for buyers who want to reduce their overall debt when buying is to accumulate at least half of the listing price. A financial advisor presents the buyers with several options for accumulating the capital for the purchase. They can invest in stocks, bonds, and CDs. Some programs, such as HUD, provide assistance for buyers who have more modest incomes purchase a home.
Setting Up Residual Income Streams
Savings and interest-bearing checking accounts provide options for residual income streams. The dividends acquired from the accounts could provide residual income. The buyer could also consider rental properties and crowd-funding selections. A financial advisor can help consumer review several options for generating the income each month. All residual income streams should be deposited in savings accounts.
Paying Additional Values Each Month
Once the buyer is in their home, they should consider paying a little extra each month. The selected value doesn’t have to exceed the buyer’s budget. The additional payments will also help the buyer pay off their mortgage at an earlier date.
In the Virgin Islands, home buyers consult a financial advisor when they are ready to purchase a new home. The advisor can help them generate adequate capital for buying a home and avoiding serious debt. The advisor shows them how to create residual income streams and save more by paying a larger portion of the purchase price upfront. Buyers who want to learn more about buying a home and controlling debt contact David Johnson Cane Bay today.