Home Buyer Resources

Few investors realize that when they sell a property on an owner-carry basis, they may be acting as a “lender” within the law. Keep in mind that selling a property is an extension of credit. In addition to state consumer and lending laws, you may need to comply with Federal regulations. The first law you […]

The late-night television airways are full of “nothing down” stories. Are they true? And, if so, is it possible to buy real estate with “no money down.” Furthermore, does it make sense to buy real estate with no money down? Everybody wants to buy real estate with no money down (especially if you have no […]

Since financing plays a large part of real estate sales, it also affects values; the higher the interest rate, the larger your monthly payment. Conversely, the lower the interest rate, the lower the monthly payment. Thus, the lower the interest rate, the larger the mortgage loan you can afford to pay. Consequently, the larger the […]

If you are low on cash or have cash and are low on time, a partnership or equity-sharing arrangement may be for you. Using partners to finance real estate transaction is the classic form of using “OPM” (other people’s money). Experienced investors are always willing to put up money to be a partner in a […]

A home equity line of credit (“HELOC”) can be an excellent financing tool, if it is used properly. A HELOC is basically a credit card secured by a mortgage or deed of trust on your property. You only pay interest on the amounts you borrow on the HELOC. If you don’t use the line of […]

You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.” Negotiating […]

Many consumers assume that “mortgage companies” are banks that lend their own money. In fact, a company that you deal with may be either a mortgage banker or a mortgage broker. A mortgage banker is a direct lender; it lends you its own money, although it often sells the loan to the secondary market. Mortgage […]

The mortgage business is a complicated and ever-changing industry. It is important that you understand how the mortgage market works and how the lenders make their profit. In doing so, you will gain an appreciation of loan programs and why certain loans are offered by certain lenders. INSTITUTIONAL LENDERS The first broad category of distinction […]

When considering an investment property loan from an institutional lender, you need to consider many of the variables involved in the loan terms being offered. INTEREST RATE The cost of borrowing money, i.e., the interest rate, is one of the most important factors. Interest rates affect monthly payments, which in turn affects how much you […]

The best interest rates are generally for conforming loans. A conforming loan is one that adheres to FNMA’s strict lending guidelines. Conforming loans generally require strict proof of income, assets and other debts. If, for example, you cannot prove income to a lender, whether it be you are self-employed for a short time or can’t […]