There’s some variation in how these programs work. Program A might give you the money in the form of a grant while Program B might be set up as a matching savings plan, where every dollar you put in is matched up to a certain amount. Generally, you don’t have to pay the money back as long as you stay in the home for a minimum number of years. If you’re ready to buy but a down payment is an issue, looking into this kind of assistance may be just the solution you need.
4. Make sure you’ve got a backup plan
One thing you might not give much thought to if you’re buying a home in your 20s is what would happen to the home if you pass away. You’re young, you’re healthy, you assume that you’re going to live long enough to pay the mortgage off, right?
When you’re closing in on 50 or 60, you have to give this a little more consideration, especially if you’re married. You don’t want your spouse left holding the bag on a big loan if something unexpected were to happen to you. Putting the right insurance coverage in place can head off problems before they happen.
Term life is usually the more affordable route when you’re older. Whole life allows you to build cash value but the premiums tend to be much higher. Regardless of which one you decide to go with, one thing is a must. Make sure you have enough coverage to pay off your mortgage and any other debts you don’t want to leave behind.
Looking to buy your first house in your 40s or 50s? Tell us what challenges you’ve encountered along the way.