The new rule for buying a home is to use owner financing
What does the American Dream mean to you? Although people may have different hobbies and interests, one thing remains constant: Home ownership! In today’s economy, it is becoming increasingly difficult to achieve the dream of home ownership. Too many Americans follow the unwritten rule that home ownership requires us to “Find a Realtor” and get a loan from the Bank. This ‘rule’ might have been useful in past economies with strong job markets, low inflation and more credit restraint.
Our current economic system makes it hard for the average person in America to realize the American Dream of home ownership. Banks require a stable work history and a W-2 in order to lend money. This is because of the unstable job market, where double-digit unemployment forces people to be self-employed. The banks require stricter credit scores in times of credit crisis than most people can achieve. There are fewer Americans who are willing to follow the traditional rules for owning a house.
Imagine if you could realize the American Dream of Home Ownership with no assistance from a bank.
This document was created to give motivated home-owners the opportunity to create a New Rule of Home Ownership. It allows you to declare your independence from Banks in order to own your share of the American Dream of Home Ownership.
Let’s examine the current rules for purchasing a home with Traditional Bank Financing in order to better understand the New Rule.
The Traditional Bank Financing’s first section focuses on qualifying for a loan. There are many loan options available, but the FHA Loan is the most popular. We will use their guidelines to illustrate. These guidelines are for an FHA loan:
FHA Loans are only available to those with a credit score below 620.
FHA requires 3.5% down payment on the home. The down payment must be paid from your bank account. It is not permitted to borrow money from family, friends, or any other person. Document where the funds came from for the down payment. Particularly, the source of your down payment must come from your personal savings, checking, or retirement account. It cannot be borrowed.
