Baltimore HUD Homes Blog

Perennial renters find setting aside something monthly for the rental simple enough; but even if they don�t admit it, they do dread having to do it for a place that they don�t, and wouldn�t ever, own on a meager salary. If one does not have enough stashed away for the purpose of purchasing a place of his own, it would be wise for him to have an overview of home-buying tips and tricks to help him acquire his own property.

A short budget should not be a factor for one to not try and acquire his own property � there are plenty of lending institutions out there that compete tooth-and-nail to get a borrower to pay them some attention. In the guise of wanting to help the buyer acquire his dream house, these lending institutions are like spiders with their webs all spread out luring the borrower into their parlor, offering juicy, easy-to-pay plans that are too attractive to pass up. If the borrower doesn�t have a good overview of home-buying goings-on, he just would easily fall into the trap of actually borrowing money to buy his own home.

If the buyer has a good overview of home-buying techniques, he would know that there is yet another open alternative for him. This is what is called owner-financed mortgage loans, nothing new to the industry. In fact, this owner-financed method of acquiring one�s own property is even older than the banks. History has it that our forefathers made arrangements with estate owners wherein the buyer gave a small lump sum to the seller, and the balance are paid in trickles when harvest was good. Sometimes, the balance was paid not with money but with crops or harvests.

Now, this kind of arrangement of acquiring a property has been made more sophisticated and popularized in the modern world. If the wise buyer would only care to read some overview of home-buying methods, he will find out that it is now an accepted practice for a buyer to approach a seller and offer to give a portion of the cost of the property in lump sum, and the balance be paid in trickles. Though the balance will be slapped with an interest that is probably higher than the commercial interest rate, the trade-off is the very convenient and leisurely payment scheme for the buyer.

More often than not desperate sellers would agree to this arrangement, but would impose a high interest on the balance. The owner/seller would be getting the full value for his property over time, but the high interest slapped on the remaining balance is enough to cover what is called in the parlance of commerce as �cost of money.� In the end, it�s a win-win situation.

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