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 be costly options in the current financial climate. “Conventional financing and private money sources are difficult for investors to access in this market,” Carleton affirms. “I encourage the government to provide incentives for investors to not only rehab foreclosed property but, more importantly, for lenders to develop financing programs tailored toward investors’ needs. Under current market conditions, creative financing is the single most effective means of funding any real estate transaction. But, the government needs to work toward giving investors a myriad of tools to use in putting together real estate deals.“

If investors like Sheets have their way, perhaps Congress will pass the current $15,000 tax credit proposed by House Republicans. Although the $7,500 credit is appealing to first-time buyers, many believe that a $15,000 housing credit for any purchaser would be an effective way to jump-start the economy.

See Also:

Revival of the $15,000 Home Buyer Tax Credit?

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 first-time home buyers only.

The attempt to revive the $15,000 tax credit is being carried out by House Republicans.

The Washington Post reports:

“Under the proposal, borrowers refinancing their mortgage would be eligible for $5,000 to help cover closing costs or to reduce their principal balance. The plan also revives a $15,000 home buyer tax credit proposal that Republicans pushed last year. This time, the proposal would require the borrower to have at least a 5 percent down payment. Both programs would expire in July 2010.”

So, that’s 5k to help you get into a house and an extra $15,000 at tax time. Although the minority party may not have a good chance of putting this bill through, it would be a helpful boost to potential homeowners, including those looking for creative financing solutions.

Can you imagine how useful this law could be for borrowers looking to purchase one of those $30,000 condos in Vegas? What a deal!

See Also:

Creative Re-Financing: Obama’s New Foreclosure Plan

Buying a Home on a Credit Card

The easiest way to find out is to pick up a phone and call your lender. They should be able to look up your records and give you the necessary information. Some major lenders, such as Wells Fargo, give out this info via an automated hot line.

If that doesn’t work, you can contact Fannie Mae or Freddie Mac directly using the info found on the government’s Financial Stability website.

In some cases, your mortgage ownership information will show up on your credit report or on files at the the County Recorder’s office. But, it’s important to note that this data can be out-dated or unreliable.

For the few who who meet the requirements, the federal creative financing program can be a smart way to get a low interest rate.

photo credit: borrowed time | demi-brooke

See Also:

Creative Re-Financing: Obama’s New Foreclosure Plan

FHA Mortgage Basics

1. you must live in the property as a primary residence

2. your mortgage must be insured by Fannie Mae or Freddie Mac

3. you must be current on your mortgage payment

4. the amount you owe on your home must be equal to or less than the value of the property

If you want to give this “creative refinancing” a try, check out the official FinancialStability.gov website.

See Also:

Creative Re-Financing – Obama’s New Plan