As they say, dreaming doesn’t require money, but turning a dream into reality does. You’ve been looking to purchase that perfect home for the last several years. Perhaps you’ve been thinking about how to mobilize your finances and close the deal. There’s no denying that the current economy may not always be favorable. Nevertheless, where there’s a will, there’s always a solution.

Below are four simple ways to finance your dream home purchase:

  1. Shared Equity Home Ownership

If you’re short on cash, as many people currently are, you’d want to try shared equity home ownership. This is a form of low-cost home ownership. In many cases, you’ll find your local government, state, or nonprofit housing organization running these programs. They usually subsidize the down payment and monthly premiums. In return, they own about 20 – 40 % of the property. That leaves you with 60-80% ownership of the property.

As time goes by, the property appreciates price-wise. And if you renovate and sell it, you get some good money. Of course, this will be in the proportion of your shares.

However, the lease terms are usually long–sometimes, up to 99 years. This is a form of sale restriction. Those running the programs argue that such sale red tapes ensure the houses remain accessible to lower-income households. Therefore, if you opt for shared equity home ownership, get into it with a long-term mentality.

Generally, the preferred candidates for this form of home ownership are as follows:

  • First time home buyers
  • Army veterans
  • Widows and widowers
  • Those living in rented houses with extended family members
  • People with special needs
  • Those who are above 60 years
  • Those who’ve gone through housing difficulties

Do take note that the above are just general provisions. The conditions vary from one association to the other. So, even if none of the above applies to you, try and see if you can apply for shared ownership.


  1. Personal Savings

Whatever amount of salary you earn monthly, you can save a portion of it until it’s enough to purchase a home. First and foremost, perform a personal financial check to have a rough idea of what you can comfortably afford. Look at things like the following:

  • Your monthly earnings
  • Your total savings so far
  • Debts you still have to clear
  • Your monthly expenses

Once you do proper estimates of these items, project into the future to determine the total amount of money you’ll be able to save after a given number of years. This way, you’ll have in mind the kind of house you can afford.

You agree that saving calls for extreme discipline. Otherwise, you may never achieve your financial goals. To help you in this journey, here are a few practical tips you can borrow:

  • Be very patient: Saving for a home isn’t a one-month affair. It may take many years, depending on how much you stash away every month. So, gear up for the multi-year endeavor.


  • Get rid of debt: It isn’t logical to start saving cash while you still have plenty of debt to pay. Pay all of them first, and then you can embark on your savings plan.


  • Have a target: Without a goal, you’ll be like a sailor that sets sail with no particular destination. The result is drifting randomly wherever the ocean waves want you to go. So, have a definite figure that you want to hit. Break it down into monthly installments and constantly assess whether you’re meeting your target.


If you find it difficult to meet the monthly minimums, you may want to revise your overall goal.


  • Size down: If you’re currently paying too much rent, you may not always have enough left for savings. Accordingly, shift to a rental house that claims not more than 20% of your income. Additionally, change your lifestyle for good. For instance, you can deny yourself most of those expensive vacations you usually enjoy.


  • Work multiple jobs: Perhaps your main job doesn’t give you decent pay. Don’t fret. Instead, see if you can fit other hourly jobs into your schedule. The more income you get, the more cash you can save.


  1. Bank Loan


Suppose your source of income is reliable. You can choose to take a personal loan from your bank to finance your dream home purchase. To qualify for such loans, your credit score has to be impressive. Moneylenders don’t fancy giving cash to people who’ve had problems in paying previous debts.

One thing to note is that the home you purchase might be used as collateral. In other words, if you default in repaying the money you borrowed, the lender can sell the house to recoup their cash.

Additionally, personal loans have higher interest rates and shorter repayment periods than mortgages. Therefore, make a point of ensuring that the income you get monthly can meet the repayment demands. Failure to meet your obligations may attract penalties, which will only frustrate your dream to own a house.

  1. Mortgage

Finally, you can take a mortgage for your home purchase. It’s a type of loan meant to ease the financial burden of would-be homeowners. Usually, financiers charge low-interest rates and spread the installments over dozens of years. You can repay the loan for even up to 30 years.

Whether you apply for a mortgage from a credit union, bank, or savings and loans association, they’ll want to know what assets you have and your level of income. If, for some reason, you fail to pay your mortgage, the lender may start the foreclosure process, which means you’ll lose the house.

But even so, there are several ways to avoid foreclosure. One, you can negotiate with the lender for new interest rates and repayments terms. Secondly, you can talk the lender into suspending the monthly payments until you get back to your feet.


There are many ways to finance your dream home purchase. What you need to do is to carefully consider the several choices and choose the one that works best for you. Note that all the options have their merits and demerits. Eventually, it boils down to individual preferences and income levels.