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Buy a House

Why would anyone want to buy a house in today's recessed market? Actually, there are several reasons. First of all, housing prices have reached an all-time low; making real estate a great investment for buyers who desire to hold the property for several years. One thing is certain, housing prices will eventually rebound. Investing in real estate today can potentially yield a tidy profit later.

Another reason to buy a house today is the fact there are so many options. In the past, most people bought houses through realtors. They found a home they liked, made an offer, and obtained financing from a lender.

With the current credit crunch buyers are finding it is considerably difficult to obtain traditional financing. Instead, people are turning to creative financing options such as rent-to-own and seller carry back mortgages.

With rent to own property, buyers typically provide a small down payment to the homeowner. The homeowner establishes a pre-determined purchase price and a portion of the monthly rent payment is set aside as payment toward the home. For instance, the purchase price of a home is $200,000. The buyer provides the seller with a 5-percent down payment of $10,000.

Rent is established at $1200 per month, with $200 attributed toward the purchase. This arrangement generally lasts for two to three years. If the contract lasts 3 years, the buyer will have contributed $17,200 towards the purchase price. At the end of the contract, the buyer obtains a mortgage note through a lender in the amount of $182,800.

Seller carry back financing can be used in a variety of ways. The most common process involves the seller carrying back a portion of the purchase price, while the buyer obtains financing for the balance.

For example, a buyer purchases a home for $200,000 but only qualifies for a loan of $160,000. The seller carries back the remaining $40,000. The buyer has two loans against the property - one to the lender and one to the seller. Seller carry back financing is a good option for buyers who do not possess the financial means to provide a down payment.

There are many ways to buy a house even if you don't have great credit and a large down payment. Our home buying article library is packed with information on buying and selling real estate; the different types of real estate properties such as foreclosure and bank owned home; and tips for overcoming financial challenges such as bankruptcy and credit card debt relief.

Additionally, we provide a variety of real estate investment opportunities. If you want to buy a house at reduced prices, take a moment to subscribe to our RSS feed located on the left sidebar. You will receive up-to-the-minute listings of all properties available for sale; many of which are listed at up to 30-percent under market value.


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Published on March 17, 2009 at 03:31 AM

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