When pursuing a mortgage in order to purchase a home, sometimes traditional financing programs and options (Conventional, FHA, DVA, USDA, etc) may not meet the needs of all clients. While riskier options such as contract for deeds, hard money lending, and more exist, they yet again may not be the right fit for certain home buyers.
Below are a few alternative financing options that may bridge the gap for some buyers, depending on their financial situation.
Note: All of the alternative financing options listed below are available through local lenders. These programs do have certain income or credit requirements and must be applied for independently with the relevant institutions.
Become a Cash Buyer
Become a cash buyer and become more competitive. This program is particularly helpful for individuals who need to sell their home before purchasing, for buyers who are purchasing in a competitive price point or market, or for someone who may need a quick closing in under 30 days. This program requires sufficient assets for a 5% down payment, among other requirements.
Put 1% Down
Ideal for buyers with lower credit or little to no credit history, this program is focused on supporting buyers from the minority community to access homeownership and requires only a 1% down payment.
Buy with an ITIN
Buyers without a social security number and who need a mortgage to purchase a home may be able to utilize financing options that verify identity and assets in alternative ways. This program requires sufficient assets for a 10% down payment, among other requirements.
For Islamic customers looking to purchase a home without utilizing a loan/usury, a sharia compliant loan offers an alternative structure to the traditional mortgagor/mortgagee relationship.
If you are a home buyer interested in one of the above programs, we would be happy to connect you to a local lender at the relevant institution.