If you need to obtain necessary financing for the purchase of a home it is important for you to know that there are alternative lending sources other than banks and traditional lenders that you can use for a mortgage, even if your credit or other circumstances are less than ideal. There are government sponsored programs that allow a variety of people wit different backgrounds to purchase a home with a low or no down payment and affordable interest rate. Fha purchase financing is an option many people who are involved in the buying process.

Fha purchase financing is financing insured by the Federal Housing Administration which is a government owned organization that works to extend mortgages to people who do not meet traditional lending criteria. The Fha was established under the National Housing Act, with their goal being to extend financing to people with repayment abilities who otherwise lack the ability to get a traditional loan. The FHA does not provide the finances necessary to fund a loan, however, they insure the loans of those buyers who use their programs allowing lenders who would not otherwise be able to extend them financing to give buyers a loan.

Because the Fha insures loans against default, they have opened up the prospect of homeownership for people who had previously been unable to get a loan. First time homebuyers, minority borrowers, buyers with a poor credit history or a lack of credit, and prospective homebuyers who do not have a lot of money for a down payment or closing costs can purchase a home because of Fha purchase financing.

Fha mortgages have many benefits. The major benefits to Fha mortgages are that they require a low down payment, usually 3% of the home’s purchase price which is much lower than the conventional 10 to 20%, closing costs can be included in the loan, credit requirements are much lower than with traditional loans, and other requirements such as cash reserves may not have to be met like with traditional lenders.

If you are trying to purchase a home and have had trouble attaining financing you should speak with a Fha approved mortgage broker. They will be able to tell you the details of Fha purchase financing and what qualifications you will have to meet in order to get financing. Fha approved mortgage brokers can help you navigate the process of home buying and find a loan that is compatible for your unique situation.

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.
current mortgage interest rates

Private real estate money is the answer. So what is private real estate money and how do i get it to purchase real estate investments.

Private real estate money is simply borrowing money directly from private individuals rather than a bank or other commercial lender. Private lenders tend to be ordinary people such as doctors, lawyers, accountants, business owners and possible retired people. Most private lenders are simply looking for better investment returns than they can typically get from bank CD’s, money markets or even bond investments. Over the past couple years these type investments have yielded a paltry 3% to 6% pretax rates. We can pay private real estate money lenders 9% to 15% on their money. So it is easy to see why they will be interested in investing in your real estate investments to get that kind of return on their money.

Private real estate money lenders will want to know several things about a property before they will invest. The questions most private real estate money lenders are going to want to know about your investment include:

1. What is the purchase price?
2. How much is the property worth once fixed up and rehabilitated?
3. What will the rehabilitation cost be?
4. How much do you want to borrow?
5. What is your exit strategy i.e. do plan to flip to a first time buyer or hold to rent?
6. When will you pay off the private investor

You may want to have a short little presentation book or business plan laid out in a professional looking format to present to a private lender that addresses these issues. This booklet will show you have a well thought out plan and help to establish credibility.

In this new era of real estate investing you need to look to new and different ways to financing your real estate interments and private real estate money will be key to your investing future.

I invite you to learn more about Private Real Estate Money and get my new FREE 20-page ebook titled “Discover the Secrets of How to Fund Your Real Estate Deals with Private Lenders!” by clicking here http://realestatewealthtoday.com/FREE-eBook.html

Mike Lautensack is a full-time real estate entrepreneur in Philadelphia, PA and creator of the Private Lending Presentation Kit. This powerful done-for-you kit is loaded with tools and techniques to attract and develop a consistent stream of private investors into your real estate business. To learn more about this kit and receive your FREE Real Estate Wealth Newsletter go to Private Lending Presentation Kit