A lot of people can’t qualify for a traditional home loan in the current market, but that’s not stopping them from seeking creative financing strategies. The $8,000 first-time home buyer incentive and declining home values are making some people consider purchasing property while others are struggling to get out of upside-down loans.

Credit.com points out the massive losses homeowners have faced in the past couple years:

“The estimates are inconsistent, but it’s safe to say that we’ve collectively lost over 1 trillion dollars of value in our homes over the past two years. While it’s a monumental disaster already, many people – including me – believe that we’re not even close to out of the woods yet. I believe home values will continue to drop, which means we’ll continue to lose true equity and experience an increasing amount of negative equity.”

While these statistics are bad news for current homeowners (myself included), many potential home buyers are taking advantage of the opportunity to buy low. Creative financing strategies such as peer-to-peer lending, seller financing, and hard money loans allow for purchases the banks won’t approve. Now the only problem is estimating where the bottom of the market is.

Tags | creative financing, credit crisis, mortgage crisis