We work with clients that utilize seller-financing. This allows the seller to sell the home often for a higher price. The seller has the opportunity to earn interest payments that would otherwise go to the bank. Through flexible terms such as length, interest rate, down-payment, and balloon payments, the buyer increases the buyer pool and can tailor the agreement to the buyers and sellers specific situation. The seller is then holding a mortgage note which allows her to sell the note if she ever needs a lump sum of cash.
As a licensed mortgage banker and broker with relationships to over 70 different lenders, I am able to offer programs no matter the financial situation of the borrower or eligibility of the property. As such, I am often utilizing non-conventional programs in order to get the borrower approved. For example, I recently assisted a client with an investment purchase solely qualifying on the future rental income of the property. No tax returns or income needed from the borrower at all. There are so many programs available outside of conventional financing, where borrowers can immensely benefit from, and the process, terms, and rates are similar to conventional financing.
I had a client who moved from the USA to CAD, she had a PR card. She converted her current USA job to a contract position, so the USA company didn't have to deal with cross border taxes. She set up an Incorporated business here, invoiced her contract position and ran payroll with her accountant for one month in Dec. She then filed that years taxes in CAD for that one month of payroll. I contacted CMHC directly to ensure what we were doing was acceptable with them under their Business For Self Enhanced Program, got a lender on board and she was able to purchase a home here in Calgary insured with 10% down.
I have used FHA financing on multiple occasions to facilitate purchases in cases where my borrower may not have great credit and/or much money to put down. I often use FHA loan scenarios to prequalify borrowers because if they can't qualify using FHA, they aren't likely to qualify with any other program. It certainly disproves the myth that a home buyer needs 20% to put down.