Aspiring home buyers in Washington DC often take a step back because they fail to qualify the criteria of traditional mortgage financing. However, there are several alternatives that can help home buyers especially new home buyers to get the required financing for making the purchase which are often overlooked. The article below is all about the various alternate options of mortgage loans.
Do you aspire to buy a home in Washington DC? However, you are curious about better options besides mortgage financing? Then you need to understand that buying a new home in Washington DC a huge investment and a significant financial commitment. For first-time home buyers it can be a bit tricky for qualifying for a mortgage from traditional lenders especially if they do not have enough saved money for down payment or have low credit score.
While there are many first-time home buyer programs available that are offered by both the government and some banks, there are certain criteria that you need to fulfill. Fortunately, there are other options as well! So if you do not qualify for mortgage loans then take a look at the alternate routes to buy a new home in Washington DC without a traditional mortgage.
Rent to Own Approach
It is one of the best alternatives to rent to own when you are unable to save enough for down payment or you are not eligible for mortgage loan because of poor credit score. A rent to own property gets sold easily in a slow market while offering the benefits of having a rental property to the owner such as additional income and tax deductions. In this approach you will have to pay an option deposit to the owner that provides you an option to buy the home after renting it for a fixed period as mentioned in the contract. During the entire lease term, the owner will set aside a part of your monthly rent and apply it to purchase if you decide to purchase the home after the expiration of the lease agreement.
Look for a Private Loan
Usually, private loans are ideal for individuals with poor credit score as they do not qualify for a traditional mortgage. Private lenders are less risk hesitant than the banks, however, keep in mind that you may likely be charged a higher rate of interest to account for the higher risk of lending to you. Therefore, you need to look for a trustworthy and reputable private lender who can draw up a mortgage agreement that will put a lien on the property for securing the loan.
Be a Washington DC Cash Home Buyer
Becoming a Washington DC cash home buyer and paying cash for your home is yet another alternative. By making a cash purchase you can save money in the long run especially on closing costs and interest payments on your loan. You will also be debt free and unburdened by the monthly mortgage payments. A cash purchase is also beneficial for the seller when there is a need to make a quick sale.
However, make sure to choose a real estate agent who can help you know about the various aspects of buying new homes in Washington DC such as new home rebates in Washington DC and more to grab the best deal and find the best home.
Author Information:
This article is written by Magnolia Realty, a reputable Washington DC real estate agent with more than a decade of experience helps you in understanding the new home rebates in Washington DC and more.