FMHA Home Loan Mortgage - USDA Farmers Home Rural Development

Mortgage FMHA Home Loan Mortgage - USDA Farmers Home Rural Development

You want to get into real estate - either for your personal use or for investment purposes - but you just don't have the cash to get started? What are you going to do?

There is at least one technique that virtually anyone can use as long as the property seller is willing to negotiate with you. To be fair, not every seller will be interested (or even understand) the concept outlined. Your best bet is to find a property that the owner has great interest in selling, whether because of moving, divorce or frustration with tenants.

In fact, if you are currently renting and thinking about using this technique perhaps your landlord would be happy to help you out!


There are a few variations that can be used depending on you and your seller. Do they want the market price or are they just eager to get out from the monthly payments - perhaps facing foreclosure?

The simplest method is to take over their mortgage payments - called 'assuming' the mortgage. You will need to be approved by the original lender to assume the mortgage. If you cannot get approved for an assumable mortgage you may also try a 'subject to' assumption where you merely make payments while the property remains in the seller's name.


You take over the original mortgage AND create a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short period of time - 2 or 3 years. Instead of having the money sit in a bank they can be collecting a high interest over 2 or 3 years with the remainder due in full at the end of the term.

When the term ends you should be able to refinance the cost, or you can sell. Unless you hit a real bad market the value of the property should have risen in that time.


Easy. Most mortgage lenders merely want to make a good investment. While your local bank may still shy away there are plenty of financial lenders that would love to make a deal.

Financiers like real estate. The mortgage is usually based on 60-70% of the VALUE of the property, so as long as they know they get their money back in the value of the property if you default, they don't care what kind of money you make. Complete the deal with a second mortgage created with the seller. If you default they can still foreclose on the property and sell it, paying off the existing mortgage with the proceeds.

As you can see, it can be in the favor of a buyer and seller to work together - especially if the seller is motivated. If they can't wait for a sale, you can still give them their asking price with a little flexibility on their part.

Article Source: Mortgage Technology, This article may be freely reproduced as long as this resource box is included: Article by: Mortgage Technology,  Get Your Free $97 USDA and FMHA e-Course delivered to you.


FMHA Home Loan Mortgage - USDA Farmers Home Rural Development USDA and FMHA Articles

  • Public Records
    COMMON PLEAS COURT NEW SUITS 14-CV-0167 - Nationstar Mortgage, LLC, v. Nicholas A. Boyce, 428 Linwood Ave., et al., complaint in foreclosure for $65,812. 14-CV-0179 - The Board of County Commissioners of Clark County, Ohio, 50 E. Columbia St., 5th Floor, v. Larry L. Berner, 911 Tremont City Road, et al., petition for appropriation for immediate possession of property located at 6741 Upper Valley ...

  • Deadline nears for mortgage aid
    Financially strained homeowners don’t have much more time to get help with their mortgages. April 30 is the deadline to apply for mortgage assistance under the Save the Dream Ohio program. “The program has been going on here for about two years but it kind of came without warning that it would be cut off Read More... The post Deadline nears for mortgage aid appeared first on The Medina County ...

  • Struggling homewoners who modified mortgages won't get hit with huge tax increase
    Extension of Mortgage Forgiveness Debt Relief Act will prevent mortgage modification or short sale as being treated as taxable income.

  • More homeowners above water
    Just over 9 million residential properties, or 17 percent of all properties with a mortgage , were seriously underwater in the first quarter of this year, a 26 percent reduction from a year ago.

  • Alphonsus L. 'Red' Barron; 1920-2014: WWII vet became a mortgage lender
    Alphonsus L. “Red” Barron, a leader in mortgage lending and real estate matters, died Thursday in Otterbein Portage Valley near Pemberville. He was 93.

  • Mortgage Employment Index Declines Most in 6 Years
    DALLAS, March 24, 2014 /PRNewswire/ -- Mortgage-related job losses continued to mount, reaching the highest level in six years. But layoffs are quickly slowing. Mortgage Daily tracked nearly 22,000 layoffs ...

    COURTS TRUMBULL COUNTY Marriage licenses Brian M. Wilson, 29, of 518 W. Liberty St., Apt. 323,

  • Improving US home market is still facing obstacles
    This Friday, March 21, 2014, photo, shows a home for sale in Cleveland Heights, Ohio. Entering the 2014 spring buying season, the U.S. housing market faces an unusual dilemma: Too few people are selling homes. Yet too few buyers can afford the homes that are for sale.

  • 360 Mortgage Group Introduces Reverse Mortgage Processing as a Service Platform
    Hires Reverse Mortgage Industry Veteran Michael Suits to Lead New Division (PRWeb April 09, 2014) Read the full story at

    Shirley Ross, East Palestine, vs. William Ross, East Liverpool, divorce sought. William R. Burns, Salineville, vs. Bobbi Jo Burns, Salineville, divorce sought.