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5 Unconventional ways for financing a new home

5 Unconventional ways for financing a new home

Congratulations! If you are asking yourself about different and creative ways to finance a home, it means that you have made the decision to buy the perfect home. Finding the One also means knowing what you can afford and how to raise the necessary funds.  We know that finding the right way to buy it can cause a big headache, so we have explored the options to make things a bit clearer for you.

You can always go classic and basic: get a mortgageThe traditional banking method is by far the most frequently used way to finance a house. Depending on the bank, you can pay it off in a shorter or longer period, but most of them run for around 25 years.

The fact is: do you want to trust a bank in today’s economy? And even if you do trust them, do you think it’s a good deal to get into bed with this kind of entities? If this idea doesn’t attract and convince you at all, we found a few different and creative ways to finance your new home:

1. Sharing your property with a co-owner

Not as usual as a mortgage and much more original. Some people buy their houses with a co-owner and establish a contract for sharing the house usage throughout the year depending of the amount of money they have invested. This can be a great way of financing a holiday property. Imagine that you buy the house with a person who wants to spend two months per year there, and those months that your co-owner lives in the house, you go on holiday somewhere else, or vice versa.

2. Buying a whole building with a group of co-owners

In this type of housing cooperative everyone gets an apartment. So you all own a proper building, but you don’t have to share your home with other people. This can be a nice solution to avoid the problems you could have with the community members that don’t agree with the everyday problems: should we fix the elevator?, should we contract cleaning services?… Considering that you choose your Real Estate partners because you have similar ideas and criteria, problems like those should not appear.

3. Try with another kind of mortgage: the two step mortgages

This possibility lets you have a fixed-rate mortgage over 40 years. You will have to pay less every month, but longer in time. However, after ten years (or the period you have signed with your bank), you can review the mortgage because the loan can be modified and adjusted. This option gives you more flexibility when deciding how to structure your payment schedules.

4. The 3 F’s: family, friends and fools

Pay special attention to your social network. You never know who might be a potential sponsor of the house of your dreams. Your friends or acquaintances might be interested to invest their money in a property for you, because they feel confident knowing that you will be the beneficiary and trust that you can reimburse it. At the same time, your relatives may feel kind of obligated to act like your personal Maecenas. Be aware of the possibility of forgoing holidays for several years so you can pay back what you owe and keep family dinners civilized!

5. Crowdfunding: use the power of the crowd

This new way of financing has become very popular in the last years, specially in the startup world. Crowdfunding is a way to raise money and support for a specific project: launching  a new company, collaborate in the release of a new CD or even help someone to buy their new home or car! There are many webpages where you can publish your project explaining your idea and people can easily collaborate economically to it. Just because! You can give back a reward for doing it [or not 🙂 ].

Even though we can’t finance the house for you, we can help you find it. From being your search partner, to providing advice, you can rest assured you will find all you need at our website and on our blog.


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