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

---

Good Tenants - Learn Twelve Ways Landlords Keep Them

Happy, Long-term Good Tenants Paying On Time How to Create... Read More

Dead Deals and Recycled Reports

Everyone knows that at the end of a home inspection,... Read More

The Listing Contract: Its All in the Details

Now that you've chosen a real estate professional to sell... Read More

Why Are Mortgage Notes Discounted Anyway?

When real estate note brokers purchase partially paid notes, they... Read More

Fixer Uppers: Dont Make This Mistake

Making money with "fixer-uppers" isn't about repairing drywall or planting... Read More

Negative Gearing ? It?s Not to Your Benefit!

The concept of negative gearing has been originally developed to... Read More

Home Inspectors: 5 Tips to Choosing the Right One

Choosing the wrong Home Inspector can cost you a lot... Read More

How I Became a Real Estate Investor

Recently I closed on the sale of two homes. They... Read More

Maltas Market Battle

With new destinations such as Bulgaria, Slovenia and Croatia offering... Read More

Coming to Las Vegas ? the Las Vegas Real Estate Boom

Nobody seems to be 'Leaving Las Vegas' anymore ? in... Read More

Selling a House is Easy

The thought of selling a house strikes fear into most... Read More

Expense List for Buying a Home

There are many expenses that come with buying a home.... Read More

Selling Your Home ? Be Sure It Shows Well

Whether you are selling a house, townhouse, condo or apartment,... Read More

Finding A Capable Agent To Meet Your Real Estate Needs

Whether you're a first-time buyer, selling your current home or... Read More

Best Places to Retire

Places to Retire: Popular Doesn't Always Mean "Best"Las Vegas, Nevada;... Read More

Investing in Real Estate Vehicle for Wealth Building

Real estate is one of the best vehicles of building... Read More

Investment Property Part 2 of 2: What You Need to Know Before You Buy

Welcome to the second portion of a two-part series on... Read More

Real Estate: The Consumers Will Have The Final Word!

"The first step toward change is awareness. The second step... Read More

Minneapolis Warehouse Loft

Downtown Minneapolis is rich with true metropolitan charm. With the... Read More

Stopping Home Foreclosure with Bankruptcy

Bankruptcy Will Stop Your Sale - At Least For Now... Read More

Big Discounts With Property Investment Clubs?

A stagnant stock market, low interest rates and booming property... Read More

The Listing Agents Role in Selling Your California Home

Advertising to the "Public"Every home seller likes to be assured... Read More

Dubai or not to Buy? A Short Assessment of the Dubai Property Market

Never has there been such an ambitious and creative drive... Read More

Is 100% Annual Return On Investments Possible With Low Risk Land Investments?

In last week's article, we discussed how substantial profits could... Read More

Beat the Crowd when Investing in Real Estate

We all are thinking about it and some of us... Read More

How To Get Top Dollar For Your Home ? Fast

1. Time is money when selling your homeAfter you've made... Read More

Termite and Moisture Damage Not Reported

I have done so many appraisals where I saw obvious... Read More

What is a Foreclosure?

A foreclosure is an action taken against a property owner... Read More

Property Types A, B, C And D

One of the biggest problems individuals just starting out have... Read More

Real Estate Investing in Rentals ? the $10 Million Real Estate Investing Mistake

Renting to tenants is no longer "where the money is"... Read More

Apartment Financing Explained

So you're interested in entering the world of property management?... Read More

Financing Houses

What Real Estate Lenders Look ForLenders control many programs --... Read More

Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance

In an earlier article, we presented various options for ensuring... Read More