6 Steps To Finding Financing
The economy is still struggling to recover, and the housing market continues to sway in the balance. One of the most difficult hurdles to home ownership to overcome is financing. Credit rating systems are making it trickier to find financing and recent housing market bubbles have made securing financing an obstacle many can’t overcome. If you’re in the market for a new home and want to explore your financing options, here are the most common (and reliable) means of getting the keys to your new home.
1. Hard Lending. Still the traditional method of purchasing a home, hard money lenders have had a rough patch over the last few years. A little bit older and wiser, the lenders have tightened borrowing requirements, but should begin to loosen up as the economy strengthens. Equity based lending practices should return as the most common sense way of securing financing through hard lenders.
2. USDA Home Loans. No money down firms are still a fast way to turn over a property, and there are many niche firms that handle this type of financing. Do your homework – not all areas qualify for this type of lending.
3. 100% Financing. After the foreclosure crisis of the last few years, finding lenders to offer this quick financing option is still possible, but you have to have everything lined up and ready to go – an end buyer and your seller must already be in agreement and have the necessary documentation to utilize this option.
4. VA Loans. Offered to veterans and their families, eligible individuals can use this source of financing as a way to get into an affordable home with low rates and 100% financing.
5. Seller Financing. Born out of necessity when fluxes of properties were unable to move due to a lack of qualified buyers, property sellers began to offer their own financing. As a buyer, this can be an attractive way to purchase a property without having to worry about bank qualifying. Reduced fees, streamlined processes and faster sales make this ideal. As a seller, you can move inventory faster and for a higher price. This type of financing can cover rent to own, lease options and land contracts.
6. Crowdfunding. One of the newest methods of securing financing that is quickly gaining popularity and interest is crowdfunding. Online investors can contribute to real estate deals from luxury flips, new developments or land acquisitions. A little research into the various types of crowdfunding sites available will help you find the method best suited to your needs, and with very little work you can be on your way to getting the money you need.
Buying a home in South Florida is a major investment. Finding the right source of financing can mean the difference in thousands of dollars in interest fees and charges. Speak with a financial professional about the options that would best meet your needs, and investigate the methods that will help you get into the real estate you need the fastest.