Sources of Initial Investment and Other Financing

  • Raise, bonus, profit-sharing, loan from employer or advance against these items
  • Pension or IRA – borrow against, withdraw or cash out
  • Income tax refund
  • Special corporate financing for transferees
  • Negotiable securities – stocks and bonds
  • Credit Union – line of credit, bridge loan, credit cards
  • Personal unsecured loan from Buyer’s bank
  • Loans, trust, inheritance or gift(s) with gift letter from family members or relatives
  • Letters of credit from bank or individuals
  • Sale of present home
  • Exchange with Seller – condo for home, etc.
  • Refinancing home Buyer intends to keep
  • Note and deed of trust secured by other real estate
  • Blanket mortgage
  • Sale of assets to generate cash
  • Refinancing automobile
  • Personal loan using personal assets (jewelry, equipment, cameras, etc.) as collateral
  • Accumulate down-payment between date of original purchase and date of closing
  • Save it – establish a budget and control expenses
  • Have seller pay all allowable closing costs
  • Credits through lease with option to buy or labor and materials for fix-up
  • Finance personal property items in sale separately from the home purchase
  • Use co-mortgagor or co-grantor to help qualify for maximum mortgage
  • Cash values in life insurance
  • Christmas Club funds
  • Pledge dividends from stocks or other securities
  • Pick-up stock options
  • Nothing down financing from Veterans Administration for eligible veterans
  • Deposit return on rental contract
  • Assignment of future rents
  • Loan secured by your business
  • A partner who contributes cash or credit