Are you the creative type? New home owners often have a need for creativity; to paint, decorate and landscape. However, becoming a home owner can require a new form of creativity; creative financing.
Today's lenders are tightening their belts, securing a mortgage can be tricky for many buyers. Many options and programs are available, including federally funded programs such as the Federal Housing Administration (FHA); however these programs have limitations and minimum requirements and not every buyer is eligible. Financing a home in today's market can require more "out-of-the-box" thinking. A broker in Tallahassee, Fla is quoted with saying "Creative financing is about to become the primary means of financing,"
- Mortgage brokers and Realtors are working with customers nationally to create new sources of home financing. Some ideas that have paid off are:
- Private Loans - Loans not advertised as mortgages are available but generally require a strong professional network and may be subject to higher interest rates.
- Lease-to-own Sales - Essentially, pushing the closing date back for months to years, but allowing for possession to exchange hands.
- Asset Liquidation - Many potential home owners have taken to selling or pawning valuable assets to generate enough capital to secure a loan. Recently in Colorado, a 1955 Picasso sketch was 'pawned' to finance a down payment.
As the saying goes, where there's a will, there's a way, and today's real estate market exemplifies that. The bottom line is, consumers will find a way to get what they want. If lenders make it hard to find a mortgage, consumers and Realtors will find other avenues of financing. To read more on the subject CLICK HERE for the complete article, or CLICK HERE to contact a Signature Properties of Vermont Realtor.