Alternative Mortgage Options Changesin the mortgage industry have made conventional home financing more challenging than it was a few years ago. There are a few alternative mortgage options that may be worth a look, depending on your situation. Lease to Own is just what it infers. You rent property temporarily or for a specified period of time agreed on by you and the owner. A portion of your monthly payment is put into an escrow account. At the end of the lease term, you can offer to buy the property and use the escrow and earnest money against the offer. This plan could be good for a person who does not have enough money for a down payment. However, it can be risky for the seller because during the period of time of the agreement, the property is off the market and the “buyer” could walk away from the deal. However, agreements have been written in which the seller keeps the escrow and earnest money if the “buyer” does walk away. Take a look at mortgage calculators here. The Pay Option Arm is a variation of the variable rate mortgage. In that kind of mortgage who get a rate that can go up or down during the period of the loan. In a Pay Option Arm, the loan is similar to a variable rate mortgage in that the rate can go up or down during the period of the loan. However, you also agree to one monthly payment amount regardless of the interest. However, if the rate goes up and your payment doesn’t cover the monthly interest, then that interest is added to the principle. As a result, you could owe more than the house is worth. GMACoffers mortgagesat low rates. U.S. Department of Agriculture has a Home Loan Program, but your income must meet specific requirements and the home purchased must be located in an eligible rural area as defined by the USDA.If you are curious, you can check with the USDA’swebsite (http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1)on the basics of the program as well as income and property eligibility. Brookfield offers New Homes San Diego. A Life Insurance Loan may be beneficial if your life insurance policy has a large amount of cash value. If so, then you can borrow against the cash value of the policy. You can pay the loan off over a period of time at a reasonable interest rate. This type of loan is not based on your credit. It is said that you could secure such a loan by simply signing a few documents. An Energy Efficient FHA Loan is based on how energy efficient the home you buy is. The home you can afford to buy is based on the monthly costs. If you can cut down on the costs, you will be able to afford a better home. The size of the monthly payment is based on how much you are able to reduce your utility costs. If, for example, you can cut it by $100 a month, you can buy a house worth $15,000more without raising your monthly outlay of costs. A Home Energy Ratings System (HERS)report is used to determine how much energy the home uses. The report will be reviewed along with your loan documents to determine what energy savings you are eligible for and what options would increaseyour savings. You agree to make improvements and money to pay for the improvements will be put into an escrow account. So
you pay no upfront money. After the loan closes, the energy efficient items are installed in the home within 90 days. Check out our free real estate widgets.