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Creative Financing
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Many loan officers take pride in creative financing. They will find ways to help theri clients purchase homes; even when the odds seem stacked against them.Private money is also an option, but can come at a very high cost and low loan to values.
Creative financing may simply require the mortgage broker or mortgage banker to understand the broad range or loan products that are available.
There is a difference between creative financing and illegal financing. Be sure your mortgage professional understands the legal ramifications of what type of "creative financing" is proposed. There is a wrong way and right way to do everything, and full disclosure is always the best approach when looking for alternative ways of getting a transaction done. While being creative is a strength of a mortgage professional, it needs to have proper guidance and ethics. No one wants to be involved in loan fraud or be accused of violating a federal lending or real estate law.
Creative financing could just mean niche financing, or it could also entail creative deal structuring, both of which need experience and knowledge.
Creative financing is a very broad term in the mortgage industry. Creative financing can involve finding non-traditional ways to document income, finding creative ways to finance a home purchase with no money out of pocket, figuring out creative ways to maximize cash flow, among many other things. Consult a mortgage professional to see what kinds of creative financing you may be eligible for.
There are hundreds of different loan programs out there, and yet for one reason or another some people just do not fit into any of these programs. That is when creative financing can really help you get into your dream home, or help you refinance out of a bad situation. A good loan officer will go above and beyond, to find a way to get your home financed and help you meet your financial goals.
The term Creative Financing was coined in the late 1970's when high interest rates caused lenders and real estate sales people to have to think of imaginative ways to accomplish the financing on home purchases.
Creative financing does not include committing mortgage fraud, as obvious as it seems. If you don't qualify for a loan due to lack of income, then there's usually very little that can be done. You cannot get a stated income loan and state that you make more money than you do. This is not creative financing, it is fraud.
There are loan programs that allow you to qualify for a mortgage with less income than is traditonally needed. If you have good credit and feel you can afford your new payment regardless of your debt ratios ask your Preferred Mortgage Professional about "No Income" or "No Ratio" loans.
Often, creative financing comes at a higher cost than tradional mortgage solutions. Don't be too quick to assume you will need to get creative in order to get a good loan.
Creative Financing in the News:
| Massachusetts Homeowners Cut Electricity Rates Up to 50% (Renewable Energy World) |
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The largest renewable energy installer in the Northeast, Alteris Renewables, in partnership with SunRun, the nation's largest home solar financing company, is enabling homeowners to cut their electricity costs up to 50% of their current rates with a solar energy system installed for as little as $3,000 down.
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| QuickMedical Launches Medical Equipment Lease Program With Providence Capital (PRWeb) |
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The demand for new medical equipment continues to increase among heath care facilities. QuickMedical has recognized the need to offer hospitals, medical clinics, and other health care facilities the option of leasing new medical equipment versus paying cash or long-term high interest rate financing. (PRWeb Mar 10, 2010) Read the full story at http://www.prweb.com/releases ...
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| QuickMedical Launches Medical Equipment Lease Program With Providence Capital (PRWeb via Yahoo! News) |
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The demand for new medical equipment continues to increase among heath care facilities. QuickMedical has recognized the need to offer hospitals, medical clinics, and other health care facilities the option of leasing new medical equipment versus paying cash or long-term high interest rate financing.
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| Leibovitz can keep portfolio under new debt deal (Washington Post) |
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NEW YORK -- Annie Leibovitz, the photographer who mismanaged her fortune so badly that she faced losing legal rights to some of pop culture's most enduring images, has reached a long-term agreement with a private investment firm to help manage her debt and market her vast portfolio, both sides said Tuesday.
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| Bob Franken: The DC Tickle Fight (The Huffington Post) |
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It's a shame Eric Massa is leaving when he is. Never mind the definite impression he's a wacko, lying sleaze bag; what causes him to...
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Creative Financing on the Web: