There are other sources from where you can borrow down payments. Borrow money from your friends, relatives, or parents for 3 years. When you are borrowing from these people you can offer them second mortgage on your house.
Note:
The opinions expressed in this post are those of the author,
and do not reflect in any way those of the site owners.
As regards the articles on MORTGAGE, be careful when taking decision
unless you want to become a SLAVE to your debt.
1. Borrow against your 401K plan. You can borrow up to $50,000, but remember you will have to pay it back in 5 years otherwise you will end up paying taxes and penalties on it.
2. Borrow from your bank. Ask them to give you a personal line of credit for a small amount. The bank might give up to 5% of the cost of the house against your personal line of credit.
3. Borrow from your life insurance company against your life insurance policy if you have some value in your life insurance policy.
4. Borrow against your jewelry or valuables if you have money. People don’t have a problem in lending money if they have some collateral in case you don’t pay; they have something in their hands.
5. You can also borrow up to $10,000 from your IRA account without paying any penalty. The only disadvantage is that you will have to pay taxes as it will be considered as your income in the year when you withdrew it. To take $10,000 out of your IRA, make it sure you have not purchased a house in the last 2 years.
If you are thinking about buying a house, go and see your bank first. If you have been banking for a long time with the same bank, there is a good possibility that their mortgage loan officer will give you the best rates. But before jumping into anything, look into your local newspaper and there are a lot of different lenders who might offer you the best interest rates.
You can also meet some mortgage brokers if you have a problem finding yourself mortgage. Most of these mortgage brokers charge some fees for their services, so you will have to pay that upfront in the shape of points. One point is equal to one month of payments. It can vary anywhere between ½ point to 3 points. I will recommend avoiding paying points because it is coming out of your pocket sooner or later.
Banks or lending institutions also bargain a little bit. But your rate of lower interest means thousands of dollars in savings over a period of time. It is very important to shop for mortgage interest rates because it can make a difference of thousands of dollars over a period of time.
Government agencies that can help in buying houses and start businesses.
1. HUD (Housing and Urban Development) –
HUD helps people in buying homes as well as helps people setting small businesses by providing financing as well as giving grants.
http://www.hud.gov
http://www.hud.gov/offices/osdbu/contact,cfm
2. FHA (Federal Housing Administration) –
http://www.fha.com
These are the two best sites to learn about different government programs as well as to find out if you can get some kind of assistance from the government. FHA loans can give you up to 97% of the purchase price.
3. VA (Veteran Affairs) – http://www.va.gov – Armed Forces personnel and war veterans can go here and get lower interest rates.
4. Fannie Mae – http://www.fanniemae.com;
5. Freddie Mac – http://www.freddiemac.com – These are two private buy government sponsored companies which help in consumer financing. You can also find some foreclosed properties as well as good prices on some real estate properties. It is also very easy to get financing through them.
By Ashok of http://becomerichinfiveyears.blogspot.com
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