Finance Roll

Many tools are at the disposal of people looking to sell a home. If the buyer is unable to qualify for a conventional loan but has verifiable income and credibility, then a seller should consider alternatives to conventional financing.

Buyers and sellers are going to have to come out of the box of the conventional when it comes to financing in the coming years.

The foreclosure rate for those with sub prime lending is beginning to see a plateau and will soon come to an end.

But, what about the people who are now being affected in a different way?

Maybe you did not have a sub prime loan. Maybe your job was connected to the housing industry. Many jobs were connected to the housing industry, and when the bubble burst it was more like a damn rupturing and flooding this economy with strife.

We are now in a time of change. We have to change the way we earn, spend, and save our money. Change does not just stop there, we have to roll with the new lower economy and learn techniques to keep us advancing.

Now is not the time to stand idly by, thinking you cannot own a home. Now is the time to become creative with home ownership.

Many people still believe in the American Dream of home ownership.

Another technique to use is lease with the option to buy. This is probably one of the more liked techniques by buyers.

With an option, if you are unsure of the house, you can walk away at the end of the option period. For example, you were thinking of buying an older home in a more mature community. You found a seller who plans on moving to another state. The seller agrees to lease their house to you with a minimal option amount of money.

At the end of the lease option period, you decide the community and or the house was not what you were looking for. With a lease option you can either exercise the option to purchase, or walk away with no further obligation.

The seller however would keep the option money and have to look for another buyer, if they decide not to move back into the house.

In this situation no one really loses. The seller does not lose because they keep the option money. The buyer does not lose because they have the flexibility to move without the hassle of selling a home.

Many buyers with a lease option decide to stay in the home. After a few years the home is normally worth more than when the contract was signed. People with lease option find it easier to qualify for conventional financing at the end of the contract period. One factor being the home has more equity, and time is the other factor.

The time period of the lease option would be from three to five years; a person would have time to rectify any negatives on their credit reports.

With our nations current credit crunch, and the tightening of lending requirements it is now time to think outside of the box of the conventional.

The aforementioned techniques in part one and two, are just a couple of ways to sell or buy a house. Both parties need to make sure this is what they wish to do and no one should just trust anyone and let them stay in their home.

Even with owner financing there are still requirements, it is just the requirements are not financial barriers from owning a home.