If you are considering the purchase of a home and think you may possibly have difficulties in securing a mortgage loan there are many creative mortgage financing options available. Not all options will apply to everyone, there are quite a few to choose from and it is quite possible one or more would apply to your situation.
The first consideration is what you are looking for in a home and the price you are able to afford. One option is if you have the ability to do renovations, purchasing a fixer upper very a low purchase price could provide you with an excellent profit should you put a small amount into renovations and resell for a profit. The profit will give you the funds to purchase a larger home so you could continue to renovate and resell until you achieve the home you would like to reside in permanently. A loan for the original home could be through a hard money lender. These companies lend funds as a short term loan with high interest rates. These are great for those who can renovate and resell in six months or less.
Purchasing property under a land contract is an option as well. You would live in the home, pay the landlord a down payment of usually around two thousand dollars or less and a portion of the rent paid each month will go towards the purchase of the home. When the property is paid off you will receive the title. The only drawback to this is the length of time it may take to save up for the down payment and if you default on the payments at any time you will risk losing the property.
A no documentation loan is one where you need no documentation of your credit or your income. In the majority of these loans a lender will only provide around eighty percent of the total price of the property so you would be responsible for coming up with the other twenty percent, which would amount to twenty thousand dollars for a hundred thousand dollar home. This is a good option if you have some money saved up or could possibly borrow from friends or family.
A final creative mortgage financing suggestion is no money down mortgage. What this entails is you get a mortgage loan and also get another loan to have funding for the down payment. If you are able to find a home that is priced well below market value, a foreclosure for example. You could put a few thousand into updating the property and resell in a few months for more than your original loans, pay them off and your credit will increase enabling you to purchase another piece of property. There are many different ways to finance a mortgage; many of them are quite creative financing tactics. Do research and more research to determine which would be the most profitable route for you.