AgentIndustry News

Alternatives to traditional financing

When the lender says no, look elsewhere

Despite all the information in the press about a thaw in the availability of mortgages, many highly qualified borrowers are still having a difficult time obtaining financing. This is especially true if you own a more expensive home. What can you do when either you or your house is not a good fit for "traditional" financing? Because of the tight credit market, a host of new alternatives to traditional financing are starting to emerge. If you are having trouble locating the right loan for your situation, here are just a few of the resources to consider: 1. Credit unions Unlike banks and mortgage companies that sell their loans on the secondary money market, many credit unions actually keep the loans they make in their own portfolio. (The secondary money market purchases bundles of loans from lenders. These loans must meet specific guidelines such as those set by FHA, Freddie Mac and/or Fannie Mae. Once the primary lender sells the loan, the lender is now in the ...