Overview of Financing For Corporate Real Estate
When looking to borrow money to purchase a piece of property there are several choices. Paying cash is always the best option, but unless you are already wealthy with a large reserve of savings, you will be like the biggest majority and will need
financing in order to obtain a piece of real estate, whether it be a home you wish to live in or property you wish to invest in. Owner financing, where the owner of the property will allow payments to be made toward the purchase of the property is another option. This can be a good option if you aren’t credit worthy (have a low or no credit score.) Many owner financed homes will allow for little to no down payment and this helps those who want to buy but don’t have a large cash reserve for the down payment. You even save on closing costs because the home won’t be put into your name officially until it is paid in full. Caution should be exercised when looking into owner financing. Have a real estate attorney to draw up the agreement and make sure the title is clear.
The other options are government loans and corporate housing. Financing can come from any of these institutions: the builders, commercial banks, credit unions, federal agencies, individual investors, life insurance companies, mortgage brokers, savings banks and savings and loans associations. Many of these will require credit checks, at least a three percent down payment or possibly up to a twenty percent down payment. In addition to down payment you will need closing costs, which amounts to around three percent of the purchase price.