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Are you creative enough?

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.

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.

 

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