Purchasing a property in today’s tough economic situation – either for personal or business purposes – requires you to be creative in finding ways to secure one that would cost you the least. But fear not – where there is a will, there is a way! Consider these two mortgage options: Homepath and FHA 203k.
What is Homepath mortgage?
First things first – let’s have a look at Homepath mortgage; the mortgage loan allows a buyer to simply purchase a property with a very low down payment, something which in this current economic climate is becoming more and more important to individuals and businesses across the nation. It also offers various other benefits that can make getting a mortgage much easier and more affordable than you possibly expected. This means that if cash flow is a problem or if large deposits aren’t easily to hand then it doesn’t necessarily mean that you will not qualify. In fact, these sorts of mortgage lenders are specifically aimed at your situation and can therefore help in many cases where traditional lenders would have failed.
That means that if you are looking for a mortgage lender that recognizes small business owner distributions and the importance of simple and easy financing then this could be the ideal solution for you and it could be structured in a way that allows for a smaller down payment than you may have previously expected or asked for from previous lenders, and the repayments could also be structured in a way to make things more manageable to work around the project and reason behind the purchase.
What is FHA 203K?
Now let’s talk about another mortgage option you can consider: FHA 203K. 203k mortgage lenders allow buyers to effectively refinance or simply purchase and renovate a property with one simple loan and one simple closing. This expedites the entire process as well as making it much easier to manage and much easier to keep track of. This makes the whole process in general much easier than some other lending as well as much quicker and so much simpler to manage overall which can help to relieve the headaches that can sometimes be associated with these sorts of larger purchases and larger sums of borrowing.
Many people believe that there are very strict rules governing what sort of work can be financed and a lot of people do wrongly assume that to get this sort of finance you would have to be doing a complete overhaul of a property or taking on very large projects indeed. However, this really is not the case at all and although there are of course certain restrictions and requirements, the scope of what is covered is actually much larger than you may have originally thought.
These sorts of loans can cover all kinds of improvements from energy-efficiency improvements right through to completely refurbishing old or damaged properties. That means that if you have a huge project ahead of you then you could well qualify but even minor replacements, minor repairs and small changes could also still fit the bill. The best thing to do is take account of exactly what you will need to do, when you will need to do it and the finance required in order to complete all of the jobs, no matter how large or small.
This allows a large scope for this kind of lending and it is well worth considering it as it can create huge value for anyone looking to replace anything from something as simple as a carpet or windows and doors, through to replacing an entire wall, adding an extension or replacing the roof on a fire damaged house!
Takeaway
So, whether you are looking for financing for a short term project to quickly flip and profit from, or if you are looking for financing for a larger and more long term project that may require more planning and finance, then this can actually allow you to easily finance the purchase and hopefully lead to a profitable future that may not have previously been possible before as well as one that can be easily managed and fits within your financial boundaries.