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Tell The Banks Where to Go ! Alternative Lending

Rent To Own, Vendor Finance September 29, 2016

While the majority of lending is completed by the major banks, they are not the only sources of lending.  You can use alternatives.  Below is a brief summary of the three types of lending:

The first is the traditional loan and the most common form of lending where all the major banks sit. This offers the lowest interest rates and costs of all the different loan types.

There are some great policies around now such as low–doc and parent guarantees but all require perfect credit histories.

Non-conforming  lenders. They have a rate for risk philosophy and is usually more suited for people with credit issues. The lower the risk, the lower the rate and the deposit requirement will also vary.

However, Non-conforming lenders can be more flexible with different types of income.

The rarer Rent to Own or Vendor Finance solution.  The basic principal is that you purchase the property from an investor over a period of time. You live in your home with the aim to refinance through to more conventional lenders.  This type of lending has been around since the 1940’s but is not that common now.

Christina from Nexfer

We have been running a property investment business since 2000 and have specialised in rent to own properties. This is because not only do we have a positive cash flow but we enjoy helping families move into their own homes. To improve our process, we also became mortgage brokers who understand the issues surrounding refinancing. With over 17 years experience, we can share our insights for both the investor and the purchaser and can also provide consulting service. Please feel free to ask questions.

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