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No Money Down - Q & A
| Q: |
Are there
no-down payment home loans? |
| A: |
Though
some real estate experts advise against it, home buyers interested in
buying a house with nothing down can do so. Occasionally, a builder will
offer no-down-payment loans to induce sales in an otherwise slow-moving
project. Desperate sellers will also promise to finance the down payment
to get out from under a property. A veteran can buy a house with nothing
down through a VA home loan, as can members of some pension funds |
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| Q: |
What about
nothing down? |
| A: |
Though
some real estate experts advise against it, home buyers interested in
buying a house with nothing down can do so. But it's not easy finding
these loans and in some cases they can be risky. Occasionally, a builder
will offer no-down loans to induce sales in an otherwise slow-moving
project. Desperate sellers also may agree to finance the full purchase
price to get out from under a property. The Department of Veterans
Affairs, or VA, loan program is one program that allows buyers to
qualify for a no-down loan. |
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| Q: |
Is equity
sharing a good idea? |
| A: |
Equity
sharing is not as popular in a slowly appreciating real estate market as
in a rapidly appreciating one (when equity investors are easy to find).
Nevertheless, a form of equity sharing called tenants-in-common
partnerships is becoming more popular, particularly in high-priced
markets. First-time buyers are the most interested in TIC arrangements
because it gives them a way to buy property collectively with an
unrelated partner.
Loan underwriting standards are more complicated in TIC deals because
lenders have more than one party's financial situation to assess. But
many standard loan programs do apply.
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Copyright 1999 Inman News Features
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