Ever wondered how some people seem to scoop up their dream homes without drowning in hefty mortgage payments?
Their secret might just be less conventional than you think. Here are a few creative financing tips that smart buyers are using to lower their monthly payments.
• Shared Equity Agreements: They’re collaborating with investment firms who put down part of the down payment, reducing their loan size. The investor then shares in the property’s future value changes.
• Rent-to-Own Arrangements: They’re becoming tenants before becoming homeowners. Part of their rent is set aside for a down payment, decreasing their eventual mortgage.
• Seller Financing: They’re bypassing the bank altogether and having the seller finance the purchase. The terms are negotiable, which can result in a lower monthly payment.
• Mortgage Credit Certificates (MCC): They’re leveraging MCC programs run by local governments. This allows them to get a federal tax credit for a part of their annual mortgage interest, effectively reducing monthly payments.
• Purchasing Below Market Value: They’re hunting for bargains in foreclosures or distressed properties. These homes often sell below market value, reducing their mortgage loan and monthly payments.
• Crowdfunding the Down Payment: They’re getting creative and turning to platforms like HomeFundIt to crowdfund their down payment.
• Joining a Housing Co-op: They’re buying into housing cooperatives, acquiring shares in a corporation that owns property. This not only gives them a place to live but a share in the corporation’s mortgage.
Remember, every situation is unique, and what works best for you may not work for others. It’s always advisable to speak with a financial advisor or real estate professional before making significant changes to your mortgage strategy.
Ready to talk about your mortgage and real estate needs? We’re here to help. Reach out and let’s chat about your options.
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