Real Estate Financing Ten Ways

Real Estate Financing Ten Ways

Real Estate Financing - Ten Ways
Do you remember when real estate financing meant you saved up enough to​ put 20% down on a​ house, and​ then you got a​ mortgage loan for​ the​ other 80%? Well, you can still do that, but there are many more options now .​
Here are ten of​ them.
1 .​
Gifting programs .​
In some parts of​ the​ country, builders fund foundations that give you a​ portion of​ the​ downpayment, so you can get into a​ home with as​ little as​ 3% downpayment from your own pocket .​
FHA and​ other lenders have so far approved of​ or​ allowed this.
2 .​
No-doc loans .​
These and​ low-doc loans, meaning no or​ low documentation requirements, are back, and​ you can find them through online banks .​
These are for​ those of​ you with bad credit but 20% to​ 30% to​ put down on a​ home .​
You don't even have to​ have a​ job.
3 .​
FHA loans .​
The Farm Home Administration doesn't actually loan the​ money, but guarantees your loan for​ the​ bank, so they can loan up to​ 97% of​ the​ purchase price, depending on the​ particular FHA program.
4 .​
VA loans .​
If you have been in​ the​ armed services, have a​ decent job, and​ can save two or​ three paychecks, you can probably get a​ home with a​ VA loan.

5 .​
Land contract .​
Also called contract for​ sale and​ other names depending on the​ part of​ the​ country you are in, this just means that you make payments to​ the​ seller instead of​ a​ bank .​
It's up to​ you and​ them to​ negotiate downpayment amount, interest rate, and​ the​ term of​ the​ loan .​
6 .​
Seller-carried second mortgages .​
Some banks will allow you to​ have as​ little as​ 5% into a​ home purchase, but will then only loan you 80% .​
The seller can take payments on a​ second mortgage from you for​ the​ other 15%.
7 .​
State housing programs .​
Almost all states have some sort of​ financing help in​ the​ form of​ a​ loan-guarantee program or​ outright loans for​ low-income buyers.
8 .​
Family loans .​
It may not be out of​ charity that a​ brother or​ a​ friend lends you the​ money to​ buy a​ home .​
a​ 7% return might look awfully good if​ their money is​ sitting in​ the​ bank at​ 2%.
9 .​
Manufacturer loans .​
Some manufactured-home companies are arranging financing with 5% or​ less down for​ their buyers .​
They must feel their money is​ secure, since a​ good modular on a​ piece of​ property is​ nothing like a​ mobile home on a​ rental lot.
10 .​
Credit cards .​
This is​ a​ risky one, but if​ you have a​ low-interest credit card, you can use it​ to​ come up with the​ downpayment, especially if​ you can pay it​ off soon with a​ coming tax refund, for​ example .​
Banks generally won't allow this, but you can combine this with seller financing.
Are there more ways to​ approach real estate financing? You bet .​
This was just to​ get you thinking.

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