4 Home Buying Options for 2022 if Money Is Tight

Being flexible could be your ticket to homeownership.

Many prospective home buyers were hoping property values would drop in 2022. But so far, that hasn't happened. Since housing inventory is still low, home prices remain elevated, to the point where many buyers are getting priced out of the market.

If you're hoping to buy a home this year but have limited funds to work with, you may need to get on board with the idea of changing your approach to the process. Here are four options that could make homeownership more attainable in the near term.

1. Buy a condo

With a condo, you'll commonly get less space and privacy than you will with a standalone home. But you'll probably pay a lot less, even when you factor in HOA fees, which are common when you own a condo. The result? A lower monthly mortgage payment to swing.

2. Purchase a townhouse

Like condos, townhouses tend to be smaller than standalone houses, and often, they come with limited private outdoor space. But on the flipside, you generally get more space with a townhouse than with a condo, and you might enjoy a small backyard or front lawn -- an obvious perk if you have children.

Like condos, townhouses typically require you to pay dues to an HOA. But those dues should cover a lot of maintenance items you won't have to pay for separately like you would with a standalone home, like lawn care and snow removal.

3. Buy a home with a family member

You may want to become a homeowner this year for the financial benefits involved. But if you can't swing a home solo at today's prices, consider partnering with a family member to purchase one. If you have a sibling who's looking to buy as well, pooling your money could make it possible to purchase a nicer, larger place than what you'd manage to swing individually.

That said, buying a home with another buyer could open the door to a host of tricky situations. For example, who's responsible for what maintenance? What happens if one of you can't pay the mortgage for a period of time? And what if one of you decides to move or wants to sell down the line? You'll need to come up with a clear, detailed contract that maps out what you'll do in all of these scenarios.

4. Buy a home that can also be a rental

Your goal in owning a home may be to enjoy a place to spread out in. But if you can't swing a larger living space, converting part of it to a rental could be a good bet.

Imagine you buy a home that has a finished basement with its own bathroom. If you spend a little money installing a small kitchen, you might then be able to rent out that space to a tenant and use that money to cover your mortgage payments and other costs. Then, if your income increases down the line, you can always not renew your tenant's lease once you no longer need the money (with ample notice, of course).

Buying a home in today's market is not an easy financial feat to pull off. It pays to explore these options if money is tight but you're still eager to become a homeowner sooner rather than later.