Ten Ways Of Financing Real EstateWritten by Steve Gillman
Do you remember when real estate financing meant you saved up enough to put 20% down on a house, and then you got a mortgage loan for other 80%? Well, you can still do that, but there are many more options now. Here are ten of them.
1. Gifting programs. In some parts of country, builders fund foundations that give you a portion of downpayment, so you can get into a home with as little as 3% downpayment from your own pocket. FHA and other lenders have so far approved of or allowed this.
2. No-doc loans. These and "low-doc" loans, meaning no or low documentation requirements, are back, and you can find them through online banks. These are for those of you with bad credit but 20% to 30% to put down on a home. You don't even have to have a job.
3. FHA loans. The Farm Home Administration doesn't actually loan money, but guarantees your loan for bank, so they can loan up to 97% of purchase price, depending on particular FHA program.
4. VA loans. If you have been in armed services, have a decent job, and can save two or three paychecks, you can probably get a home with a VA loan. 5. Land contract. Also called "contract for sale" and other names depending on part of country you are in, this just means that you make payments to seller instead of a bank. It's up to you and them to negotiate downpayment amount, interest rate, and term of loan.
How To Turn Disadvantages Of A Reverse Mortgage To Your AdvantageWritten by Keith Choy
When it comes to a reverse mortgage, wise consumers weigh advantages and disadvantages prior to signing on dotted line.
Letís start on a positive note, you could do what most borrowers do and opt for reverse mortgage line of credit. Just think about how you would then be able to draw on loan whenever money is required for daily living expenses, medical bills, prescription costs, home repairs, etc. This could really enhance your retirement years including in-home care expenses in later years.
Furthermore, your new found income does not affect regular Social Security payments or Medicare benefits. And lenders cannot foreclose on loan for life of borrower.
Okay, thatís all well and good but how do you turn major disadvantages of a reverse mortgage into a positive one? Itís all in perspective. For every negative there is a positive to obtaining this loan.
Itís true a reverse mortgage loan may affect your eligibility for state and federal government assistance programs such as Medicaid but it also gives you an important financial cushion and does not (as mentioned above) affect your regular Social Security payments or Medicare benefits.