Taking out a mortgage from the seller is one of the most popular creative financing strategies. However, seller financing does have some serious drawbacks. One of the most important things to consider is that searching for these types of deals will dramatically decrease the number of properties available to you. WalletPop explains: “Only sellers in strong financial [...] [...more]
Real estate guru Carlton Sheets issued a release praising the effectiveness of creative financing strategies and urging the government to expand incentives for home buyers. He explains: “Real estate investors are using creative financing principles like never before to purchase real estate. However, those who attempt to use private or hard-money lenders are finding those avenues to [...] [...more]
National 30-year mortgage rates just fell to 4.85% – the lowest rate since weekly survey records began in 1971. Bloomberg News reports: “The Federal Reserve said March 18 it will purchase up to an additional $750 billion of mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae to support home lending. The Fed is trying to [...] [...more]
There’s some indication that the $15,000 home buyer tax credit that was squelched in Congress months ago may have new life. Originally, the idea was to give anyone a $15,000 tax credit for purchasing an owner-occupied residence. However, that plan was replaced by the current law which awards a tax credit of up to $7,500 for [...] [...more]
Yesterday I posted about buying a home on a credit card. (As a refresher: no, this is not something I suggest that everyone run out and do). The example I used was condos in Vegas, which are selling for extremely low prices in the current market. Today, I want to discuss another area where this is [...] [...more]
Buying a home on a credit card may seem outrageous and unfeasible. But, in some areas, it’s becoming a very real possibility. While taking out a traditional loan is almost always a better choice, buyers who cannot qualify due to issues such as self-employment may be able to purchase discounted properties using plastic. Here’s how it’s [...] [...more]
Have you seen our new Squidoo lens: How to Buy a House When You Don’t Qualify for a Mortgage? If not, take a look. It lists the top creative financing strategies including FHA loans, seller financing, hard money mortgages, and peer-to-peer lending. It offers resources (such as suggested readings on Amazon) as well as links to [...] [...more]
Rates on traditional mortgages are expected to fall below 5%, and some lenders are already lowering their rates today. Mercury News reports: “The Federal Reserve threw more than a trillion dollars at the gridlocked credit and housing markets Wednesday, sending a key interest rate down by a historic amount. Mortgage rates, already low, were expected to drop [...] [...more]
Fannie Mae just released new guidelines, making it more difficult for potential buyers in declining areas to take out a mortgage on a condo. RTT News reports: “Fannie Mae has halted mortgage guarantees in condo buildings where fewer than 70% of the units have been sold compared to the earlier 51% benchmark. Additionally, loans for sales [...] [...more]
When borrowers need creative financing, they often look for mortgages funded by the seller. However, several types of seller financing are available and it can be difficult to tell the difference. Today I want to examine the seller carry back mortgage. In essence: A seller carry back mortgage allows a buyer to take out a small [...] [...more]
