In crunch financial situations, the banks find it difficult to give new loans for home loan seekers. They are not willing to give them loans and but their banks on risk. Creative home financing comes into place when you are not able to raise the amount of funds that you would like to in order to purchase a house. The following are some of the ways to do creative home financing:
1. If you are not able to get a loan from the bank, it should not be a worry. You can still go to some secondary financial institution, handover your portfolio of stock market shares, if you have one, and get almost eighty to eighty five percent of the portfolio value for some five to ten years. During the period, you must pay interest to the financial institution and after the period is over, you can take back the portfolio of shares by giving back the loan amount. Meanwhile, the control of the shares would be completely with the financial institution as long as they have the portfolio.
2. You can borrow some money from your parents, to keep it within the family and avoid all these banks and financial institutions, and pay them an interest amount over a period of time. Give back the entire loan amount once you are financially strong and capable. Under this setup, there is no suing or legal issues involved and there is also no pressure of finishing off the loan within a stipulated period of time. You can keep paying the interest amount to your parents till you are not ready with the entire amount. The only drawback is that we sometimes take our parents for granted and are not very serious towards paying the loan amount or even the interest amount at time.
3. If you have an old house and you want to sell that house to finance your new house, then you can do it. But what if the funds generated from the sales of the old house is not enough towards the purchase of the new house. In such a case, you can do some renovation work or refurbishing work in your old house and try to upgrade the value of your house. And now try selling the house at a higher price, a price which would be good enough or supporting enough to buy the new dream house of your choice. There would be no external party involved and no hassle of interest and monthly payments.