One way to buy a house creatively would be to have the seller hold back a 2nd mortgage. For instance, if youre buying a $100,000 house and your mortgage company approves you for 90% financing, youll still need to come up with $10,000. You could have the seller "loan" you the money, and you would pay them back in monthly payments just like any other mortgage. Check with your loan officer to find out if this type of solution would work for your situation.Check your states foreclosure market. There are often homes selling on auction for great prices.
If you are buying a home from a relative you may qualify for a gift of equity. This is were the relative you are buying gives you a certain % of equity of the property as a gift. If you are buying a property for $100,000.00, but only qualify for 90% of the purchase price, the remaining 10% may be able to come in the form of a gift. Every lender has different requirements for a gift of equity, your mortgage broker should be albe to assit you in the requirement for such a loan.
Another option is a 103 or 107 mortgage. These mortgages provide you with 103% or 107% of the purchase price, the additional 3-7% is used to pay for your closing costs.
If you are lacking the money for closing costs on a home purchase you can have the seller provide you with a seller concession. A seller concession will usually be listed as either a percentage of the purchase price or a fixed amount and will be applied towards some or all of your total settlement charges. An example of this would be on a $100,000 home purchase and if the seller agrees to give you a 3% seller concession this would mean that the seller was going to pay for $3,000 for your closing costs. This is one creative way to help to buy a home when you don't want to or can't come up with money for closing costs.
This
is not a commitment to lend. Restrictions may apply. Information
is subject to change without notice. All loans are subject
to credit approval. Equal Housing Opportunity.