MyProperty4u

Real Estate Financing - Ten ways

Written by aDmin on 8:05 AM

Do you remember when real estate financing means that you saved enough, 20% down on a house, and then came a mortgage loan for the other 80%? Well, you can still do, but there are many other options. Here are ten of them.

1st Gifts programs. In some parts of the country, builders fund foundations that give you a part of the deposit, it can be found in a house with less than 3% down payment from their own pocket. FHA and other lenders previously approved or permitted.

2nd No-doc loans. These and "low-doc" loans, which means that no or minimal documentation requirements, are back, and you can by online banks. These are for you with bad credit but 20% to 30%, to prepare for a house. They do not even have a job.

3rd FHA loans. The Farm Home Administration is not the money, credit, but a guarantee for your loan for the bank, so they can lend up to 97% of the purchase price, depending on the FHA program.

4th VA loans. If you were in the armed forces, a decent work, and can save two or three salary cheques, you can probably be a house with a VA loan.

5th Country. Even as a "contract for the sale" and other names, depending on the part of the country you are in, this means only that payments to the seller instead of a bank. It's up to you and them to negotiate payment amount, interest rate and term of the loan.

6th Seller second mortgages. Some banks allow you to have as little as 5% to buy a house, but it will only loans to 80%. The seller is responsible for making payments on a second mortgage from you for the other 15%.

7th State housing programs. Almost all states have some sort of funding to help in the form of a loan guarantee program or open loans to low-income buyers.

8th Family loans. It can not be that of love a brother or a friend lends you the money to buy a home. A 7% yield may look awfully good if their money is sitting in the bank at 2%.

9th Manufacturers loans. Some manufactured home companies are with the placement of the financing 5% or less for their buyers. They must feel that their money is safe, since a good piece on a modular property is nothing like a mobile home on a lot of rent.

10th Credit cards. This is a risky, but if you have a low interest credit card, you can use it to deal with the deposit, especially if you can pay it quickly with a tax refund, for example. Banks generally will not permit, but you can do this with the seller financing.

Are there other ways to finance real estate approach? You bet. It was just that you think.