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.

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

---

10 Tips for Investing in Distressed or Foreclosed Properties

1. Search on the world wide web for distressed or... Read More

Legal Information About the Real Estate Contract

The conclusion of final agreement between a seller and a... Read More

3 Tips to Help You Sell Your Timeshare - For More

The values of timeshares are constantly changing. There are numerous... Read More

Why it is Important to Hire Just One Real Estate Agent to Buy a Home

In our fast paced and frantic real estate market, buying... Read More

Questions Investors Should Ask When Buying and Selling Investment Property

If you're a real estate investor, here are several questions... Read More

Real Estate: Reasons and Priorities for Purchasing Property

Real Estate: Reasons and Priorities for Purchasing Property. It's not... Read More

Real Estate Marketing, Do You Use Direct Mail?

Prospecting for leads is by far the most difficult part... Read More

Give Your Home A Timeless Feel

In the world of real estate, there is a huge... Read More

What are the Top 11.5 Criteria for Selecting an Orlando Investment Property

1. Make sure units are larger than 1800 square feet.This... Read More

Should You Buy Hud Homes?

Buy HUD homes are sometimes the cheapest option available for... Read More

Why Real Estate Investment?

Why should you invest in real estate? Well, investing in... Read More

Real Estate Investing - Maximum Leveraging of Your Money

At this moment, you have access to some amount of... Read More

Investment Property Part I: How Not to Become a Slumlord

After riding the ups and downs of the stock market... Read More

Selling Houses: Flooring & Feelings

Buyers think they love Italian tile and other hard floor... Read More

Home Owner Association Restrictions ? Read Before Buying

Many communities have associations for homeowners, property owners, condo owners,... Read More

How Home Buyer Rebates Work

In today's tight housing market, many buyers are looking for... Read More

Cant Rent a Work Zone

So you've picked up your first (or third, or tenth)... Read More

Reprint Rights and How To Use Them To Generate A Steady Income

I can't emphasize enough how important it is to have... Read More

Real Estate Investing Is A Better Gamble Than The Lottery

Real estate investing begins when you move to the starting... Read More

Choosing An Estate Agent

With so many estate agencies vying for your business, choosing... Read More

The Real Estate Bubble Fallacy

There has been a lot of talk lately about the... Read More

Purchase Online Tenancy Agreements

Buy an on-line Tenancy Agreement now. As a landlord and... Read More

Getting Raw Land, Not a Raw Deal!

There is more to buying raw land than meets the... Read More

On the Crossing of Continents

Cyprus is situated in the north-east Mediterranean on the crossing... Read More

Ten Tips For Selling Your House

One of the biggest mistakes people make when selling a... Read More

Property Investing

Wrapping a property is a simple concept that can create... Read More

Real Estate Investors - Red Alert

How's the real estate marketing doing? Is the huge jump... Read More

An Investors 1st and Most Important Lesson

Are you ready for the lesson that will put you... Read More

How to Use the Internet to Help Your Apartment or House Hunting

So you are looking for an apartment to rent or... Read More

Water, Water Everywhere on the Waterfront

Waterfront living is among the most desirable of locations in... Read More

Join the Bulgarian Property Boom With Confidence

An Irish property investor in Sydney, Australia has created an... Read More

Taxes When You Sell Your Home

What's the difference between death and taxes?Death doesn't change every... Read More

RESPA: The Real Estate Settlement Procedures Act

The Real Estate Settlement Procedures Act (RESPA) is a consumer... Read More