Some rays of positive light are beginning to shine on the American housing industry. The US Department of Commerce has recently reported that home sales are beginning to move up
from depressing lows to a point where a full-scale recovery may soon be developing. That is wonderful news but there still are some bumps along the way. Homeowners are holding onto
their property longer and a number of buyers are stuck with serious credit problems, making it very difficult to obtain conventional mortgage loans from financial institutions. Yet, it is very possible for a prospective buyer who has poor credit ratings to purchase a house. It just means that guerrilla house buying tactics may need to be used. This isn’t as threatening as it sounds. Guerrilla house buying simply means that the road less traveled is used and strategies that are a bit unconventional are considered (this assumes that a standard home mortgage from a bank is conventional means).
Family is a potential source of financing for even the purchase itself. It is largely accepted that an increased down payment translates to more favorable mortgage terms (lower interest rates, etc). In some instances, this can make for the difference between affordable and cost-prohibitive financing. In this scenario, a buyer agrees with a family member on a loan large enough to provide a sizable down payment. In most occurrences, the terms of a family loan comprises a minimal interest rate; in others, the arrangement may consist of repayment of principle only. Utilizing a (now) larger down payment, it is possible for the buyer to arrange a path to home ownership that creatively slashes costly interest rates (and other associated expenses).