What are the purchase methods available to you as the Buyer?

 

  • Cash Purchase

The simplest of options is a cash purchase. You will have a very quick closing (transferring of Title / Ownership) and very few headaches. Saving up the cash to purchase a home can take years and not everyone is disciplined enough to save, however, if you purchase a home with cash you will enjoy not having a mortgage payment and will not have to pay interest.

  • Conventional Bank Loan

The most common form of a loan from a Bank. Due to the current economy, requirements can be very stringent based upon your credit score and income. Most banks will require a 15-20% down payment and a credit score of 650 or higher. To calculate your monthly payments, please use our mortgage calculator.

  • FHA Loan

A loan from the Federal Housing Administration is the easiest loan to qualify for. FHA loans allow you to have a low down payment (3.5% of the purchase price), low closing costs (most closing cost fees can be rolled underneath the loan), and easier credit requirements (usually 620 or higher). The loan is much easier to qualify for, however, the house must meet the criteria set out in FHA’s guidelines. Please see their website for more details. To calculate your monthly payments, please use our mortgage calculator.

  • USDA Loan

A loan from the US Department of Agriculture. If you are planning on purchasing a home outside of city limits this is by far the best choice. This loan falls under FHA Loans above, however, these are one of the very few 100% financed loans available on the market. In order to qualify, the home must meet the FHA guidelines and must be eligible on their website. To calculate your monthly payments, please use our mortgage calculator.

  • Owner Financing

If you have bad credit or no credit at all and do not have the entire amount to cover the purchase of the property in cash, this will be your best option. Owner Financing is where the current owner finances the purchase of the home to you. You will make payments to the owner while living in the house, similar to how you pay a Bank on a Conventional or FHA loan. Usually the interest rates are much higher than a conventional loan and may or may not require a sizable down payment. The terms of the loan are negotiable between the Seller and the Buyer.

  • Home Equity Line of Credit

If you currently live in a home now and have equity in your home, you may want to consider a Home Equity Line of Credit from the Bank. This is usually a great tool for those who are looking to purchase a second home and do not have enough of a down payment to secure the loan. Please contact your bank of choice for more information.

 

If you are interested in seeing how much you qualify for a loan, please contact us.

 


« Back to Blog