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
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.
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.
