What are my options for financing a home?
The question seems simple to answer, doesn’t it? Of course, you know the answer — cash, patience and the expertise to put the transaction together. And nurture it until the close of escrow, when the buyer is handed the keys.
Many transactions are shipwrecked by the lender and run aground before funding. Underwriting guidelines in some cases are tighter today than in 1986, when I was a lender.
Did you know that when applying for a loan, an average of 50 people will “touch” that loan?
Alternative financing might be your best option. Yes, there are alternative sources for financing your purchase besides all cash. Here are just a few:
» Seller financing
» Family member wanting to earn more interest than the banks are paying
» Employer options
» Other people’s retirement accounts
» Down payment from an IRA
These are just a few options.There are experienced institutional lenders out there that can allow more income on some programs than others. Your particular situation would need to be examined to see exactly what income would be allowed.
We have more than 90 properties for less than $400,000 in our market today from Carpinteria to Goleta, and home mortgage rates are very low. Maybe exploring your options now could result in you being a happy homeowner soon.
— Elaine Abercrombie, a broker with Abercrombie Fine Homes, is past president of the Santa Barbara Association of Realtors. She can be contacted at elaine@afhomes.net or at 805.450.0086.