Down payment for a house in Islamabad - In Islamabad, realtors and sellers are trying anything to capture buyer’s attention. A quick flip through your real estate for sale section in the local newspaper and you’ll find no shortage of ads that read “0 down.” These attention-grabber ads are usually meaningless and only used to capture a lead . . . you. There are a few “Real Methods for covering your Down Payment in Islamabad” though, that investor’s use every day. These methods have been used to partially or fully cover down payments.
Start by find a house where the house and purchase itself can make part of the down payment. It never hurts to ask. Here are some items you may want to include in your offer that the sellers throw in with the house: appliances, car, furniture, lawn equipment, expensive art, tools, etc. You then sell those items to your buyer and use that money to pay toward your down payment. It’s simple, it’s fast, and it’s smart. Imagine the bragging rights you’d have.
Another method you could use would be to substitute an investment for cash. Sometimes sellers will accept an investment as a down payment instead of cash. This kind of seller would be looking to invest proceeds from the sale of their house in “something.” They just want their money to go to work for them. You could also ‘buy under a lease-option’. Lease-options are great contracts to get into if you’re unsure how the market will go and you don’t have a lot of up front cash. In a typical lease-option, you rent the property from an investor with an agreement that after x number of years you have the option to buy the house with a portion of your rent payments being applied to a down payment. This is also known as paying a down payment over time. The great thing about this method is it’s relatively safe.
As a buyer you could even get the seller to finance the down payment. Talk the seller down 10%. Then tell them you’ll pay that extra 10% provided they take it as a note with no or very little interest and payments, balance due in a five years. Why wouldn’t they take it? It’s free money to them. In five years you refinance and pay off your note to the seller. Another easy technique is to find a “Cash Partner”. Find an investor with some cash. If you have good credit, they’ll probably want to work with you. Go in on the house together and split the equity in some fashion. Just make sure the agreement is due to end after x amount of time.
If you and your Realtor have really done your homework, you may find a house that someone owns free and clear. The best situation is when it’s a property they inherited and don’t need to sell in order to move into their next residence. You might even be able to convince the owner to finance the entire property for you, no banks involved. The terms can be discussed on a personal level. Also, if your credit is good enough, you may qualify for 100% financing. Usually, banks will want to split this up into two loans, called an 80/20. This is my least favorite method but still gets you in the house with no money out of pocket. It’s also the most common way of getting into a house with no money down as it’s the least creative, makes the most money for lenders, and easiest to implement way to go. The problem I have with this method is banks usually charge an arm and a leg for that second mortgage and they sure aren’t very flexible when times are rough.
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