10 Creative Ways to Afford a Home

If your income and savings are making home buying a challenge, consider these creative options.

Speaking from my own personal experience, the use of 4 of these techniques helped make possible home ownership for my husband and me. We purchased our first home using the following 4 creative techniques in 1 transaction: shared equity, seller financing, proposition 58, and refinancing.

Enjoy reading through these options. Call me to discuss and/or plan a creative purchase specifically designed for you. I’ll be happy to assist you with additional information.
Contact Denay, 619-925-7087 Mobile, 858-459-3851 ext. 206 Business

1. Are you a firefighter, teacher, law enforcement officer or other good citizen? New Housing Assistance programs means being a good neighbor can result in HUGE savings when purchasing a home. Through the ‘Good Neighbor Next Door’ program, law enforcement officers, teachers, firefighters, and other ‘good’ citizens can become homeowners for a fraction of the normal cost. Depending on your occupation, HUD offers a substantial incentive of 50% off from the list price of a home to those people who qualify.

2. Speak with Denay about local, state, and national down payment assistance programs. These programs give loans or grants to cover all or part of your required down payment. National programs include the Nehemiah program: the Nehemiah Program has assisted families working with lenders nationwide to provide more than a million in down payment gift funds, and the American Dream Down Payment Fund from the U.S. Department of Housing and Urban Development (http://www.hud.gov).

3. VA loans can be used to buy a home (including a townhouse or a condominium unit in a VA-approved project), to build a home, to simultaneously purchase and improve a home, to improve a home by installing energy-related features, or to buy a manufactured home and/or lot. The VA also has an inventory of VA-acquired property. A Streamline Refinancing Program, allows veterans to refinance at little or no expense. According to the Department of Veterans Affairs Annual Performance and Accountability Report for Fiscal Year 2007, the VA guaranteed 133,300 loans for veterans in attaining home ownership or refinancing their loans.

4. Proposition 58: Proposition 58 allows parents to transfer or sell their property to their children without triggering a tax reassessment if the proper procedures are followed within the time limits. California’s current property tax laws (including “Proposition 13”) require in general that real property (houses) be reassessed when there is a change in ownership. In California, property tax is 1.25% per year based on the purchase price. For example, if your parents paid $200,000 for their house that is now worth $800,000, they are paying $2500 per year in property tax. If you were to buy the house for fair market value, you would pay $10,000 per year in property taxes. Purchasing your parents home, under “Proposition 58”, can be a tax savings for you of $7500 per year!

5. Proposition 193: Transfers of homes from grandparents to grandchildren can avoid reassessment under “Proposition 193.”

If you are buying or transferring a home from a family member, I can assist you with the document preparation, title, and escrow documents needed within the required time frame. As your Real Estate Advisor, I can take you through the paperwork and processes to make sure it is a smooth transaction.
Contact Denay, 619-925-7087 Mobile, 858-459-3851 ext. 206 Business

6. Ask the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do with a mortgage.

7. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even a third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and all maintenance costs, but all investors’ names are usually on the mortgage. There are companies that can help you find such an investor if your family can’t participate.

8. Seek help from your family. Perhaps a family member will loan you money for the down payment and/or act as a cosigner for the mortgage. Lenders often like to have a co-signer if you have little credit history.

9. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

10. See if you can qualify for a short-term second mortgage to give you the money to make a higher down payment. This may be possible if you have a good income and little other debt.

If you need additional information or have any questions on these 10 creative home buying options, Contact Denay, 619-925-7087 Mobile, 858-459-3851 ext. 206 Business

Some paragraph excerpts reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®

About Denay Trinidad

Real Estate is my passion and I hope to have the opportunity to help you sell or purchase Real Estate. You will benefit from my exceptional knowledge of the local market and my focus on finding buyers the perfect property or netting sellers the right price and in the right amount of time. As a Certified Previews International Specialist, I am very qualified to sell properties that fall under the Luxury market. Much of my business is from friends or referrals. I am loyal to my clients throughout the entire process, and remain loyal long after escrow has closed. I would love the opportunity to meet with you and help you find your dream home, investment or Sell your home with all of the creativity, determination and experience I have. Thank you!
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