2 Creative financing ideas for home buyers
If you want to purchase a new home but don’t have the sufficient capital for it, then you have to find out ways to pool financial resources. Go through this article to know about 2 creative financing ideas for home buyers that everyone should know.
Creative financing ideas for home buyers
The 2 creative financing ideas for home buyers are given below:
1. Owner/seller financing: If you have poor credit score and don’t qualify for a traditional mortgage, then you should go for owner financing. The concept of owner/seller financing is very easy to understand. When the seller finances your home instead of a bank and financial institution, then it is called owner or seller financing. However, the seller can finance the home only when the home has no lien attached to it. In an owner financing, the home buyer and seller negotiates the interest rate on the loan, amount of money that is required to be paid each month and the loan term.
2. Fixer upgrade: One of the best creative financing ideas for home buyers is fixer upgrade. There are various low-cost homes that require renovation. What you can do is buy one of these homes at a very cheap price. The required down payment for these kinds of homes is very low. You can rent a certain portion of the home. The rental income will allow you to cover the renovation cost. Once, you have repaired your home, sell it at a higher price and earn a hefty amount of profit. You can use this extra cash to purchase a superior home.
First time home buyers tips
Here are some first time home buyers tips that everyone should know:
* Owner/selling financing tip: If you’re thinking to go for owner/selling financing, you should try to lower the closing costs. This will help you save a huge chunk of money. Make sure to check whether or not the seller is charging an excessively high interest rate on the loan.
* Fixer upgrade tip: If you’re considering going for fixer upgrade option, then you have to be patient. It takes time to save money. Also, it may take several years to renovate your home. Therefore, you have to hold your patience. You should also avoid purchasing a home where you have to spend a huge chunk of money for renovation. This is one of the best first time home buyers tips that you should know.
Thus, the 2 best creative financing ideas for home buyers are fixer upgrade and owner financing. You can also consult a financial advisor to get creative finance ideas.
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