Real Estate Financing - 10 Tips to Getting that New Home

Have you been renting an apartment for the past several years and now want to own your won home? Are you thinking that there's just no way you could get real estate financing due to your credit or just a lack of a big down payment?

Years ago, buying a new home usually involved putting down 15% - 20% in order to get financed on any home mortgage. Today, you have many different choices and options in securing real estate financing. Here are 10 different ideas to help you in your search.

1. FHA home loan - With an FHA, Federal Home Administration, loan, you can get up to 97% of the home price in financing. They have several different programs available including ones for people with less than perfect credit. The FHA guarantees the mortgage for the bank and isn't the actual lender. This program has been going strong since 1934.

2. VA home loan - Are you a current or retired member of our nation's military? If so, and you are employed and have a little bit of money saved for a home, you can easily get a VA home loan. This program has helped countless thousands over the years.

3. No-Doc loan - A no-doc or low-doc, loan is one that requires little or no documentation to get the loan. These home loans work well for people who have bad credit, but have 20% - 25% for a down payment.

4. State housing loan - If you're a low income buyer your state may be able to help you secure financing. All states have programs that loan money for home mortgages, or back home loans with a guarantee.

5. Gifting - Depending on what part of the country you live in, there are builders fund foundations that will "gift" you a chunk of your down payment in order to get a home loan. You may only need to come up with 3% of your own money.

6. Contract for deed - This is a great way for people who may not be able to qualify for a home mortgage with a bank to still buy a home. With this type of deal you'll work out an agreement with the seller and pay them directly. You'll work out the agreement on a down payment, interest rate, and length of the loan. Be sure to get everything in writing.