Getting Creative to Make Home Ownership a Reality

Filed under: Financial Planning

Today we are talking about creative options to make home ownership a reality. For many people, creative finance is one of these things that has a negative connotation. But, you don’t need to view this term in a bad light.

What Does Creative Financing Mean

Before the fallout in 2008, creative financing essentially meant making up income and personal finance information to get someone a loan. We all saw what problems occurred because of the incorrect information. That is not the way to go if you want to get a loan!

Things are different now. When we talk about the term “creative financing” it just means that we will look at other ways to calculate income. By utilizing different programs, it might be possible for someone to get a loan when they otherwise wouldn’t be approved. The goal is to help people get into a mortgage using the tools that are available.

One example that I can share is of a client who has done everything right. He owns four or five properties, owes less than 50% of their value, has them rented, and has owned the properties for a long time. But, on the tax returns, it is difficult to show enough income so that he can qualify for the financing on another purchase.

In this case, he also has a lot of asset liquidity that we were able to use to work with a handful of different lenders. Using asset depletion, we can help him qualify for the financing that he needs to make it work. It doesn’t mean spending all the money on it. Instead, we can utilize these assets for an income calculation.

Different Ways to Help You Get a Loan

I wanted to share this information to help you see that there are still unique ways that can be used to help get a buyer approved. These strategies can help people get into properties when it might otherwise seem impossible.

Do you need a little creativity for your loan? Are you having a hard time getting the deals that you need? We’d love to help. Talk to our team at Franklin Loan Center so that we can evaluate the options and help you find the best solution.

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
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