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:
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.
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.
Copyright
2006 Inman News Features
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