Thinking Beyond the Bank Loan
Creative Financing for a Tough Market
High interest rates have made things tricky lately, but that hasn’t stopped buyers and sellers from finding ways to make deals happen. Over the past year, I’ve seen more clients open to alternative financing than before. One approach I am seeing more often is a seller carry-back. That is when a seller has a mortgage on a property but agrees to carry
part of the loan after closing. For example, if a home is listed at $500,000 and the seller still owes $300,000, the buyer can pay that off at closing and take ownership. Instead of borrowing the remaining $200,000 from a bank, they make payments directly to the seller over time. When a seller owns the property free and clear, they can sometimes finance the whole purchase the same way. For the right buyer and seller, it can be a solid way to make a move when traditional loans do not fit. For investors, I have also seen more people use DSCR (Debt Service Coverage Ratio) loans. Those do not rely on your personal income to qualify. Instead, the lender looks at the rental income the property is expected to bring in, which can be helpful if you are buying a duplex or fourplex and planning to rent out the other units. There are also bank statement loans for self-employed buyers
who have good cash flow but do not show high income on paper. In those cases, the lender reviews recent bank statements to see what is really coming in each month. Beyond those options, some buyers are getting help from family in the form of a down payment gift or by asking a trusted relative to cosign. A gift can be a practical way for parents to help an adult child get started with a first home. A cosigner is someone who agrees to step in if the primary borrower cannot make payments. It is a serious commitment, but it can make a purchase possible in the right situation. None of these is one-size-fits-all, and each has tradeoffs, but if you have been waiting on the sidelines, it might be time to look at other options. Just make sure you have a solid agreement and good guidance from someone who’s done it before.
Design a Fun and Functional Mudroom Smart Meets Stylish
Sitting Space A cushioned bench makes it easier for users to remove shoes and boots. Built-in benches that double as storage space anchor the design and make it easy to tuck seasonal gear, shoes, and boots neatly out of sight. While many homeowners yearn for the tidy, put-together look of closed cabinets for storing accessories and supplies, a combination of closed cabinets and open cubbies for easy access to oft- used items is a more practical design for this hardworking space. Also, inside those closed
Quiz for the Day: What room in a house is seldom mentioned in property descriptions but causes boundless headaches and stress if absent?
cupboards can be a good place for shared device charging stations, to keep the cords out of sight. Multipurpose Flooring Your mudroom floor will take a beating, so choose durable, easy-to-clean tile or stone flooring. Earth tones work well in this space, for obvious reasons! If your mudroom design will accommodate a utility sink, this is a welcome addition for cleaning dirty hands and footwear. Another good dual-purpose design is to convert your laundry room into a mudroom. Wall Storage Hooks and open shelves along the walls can provide needed storage for clothing, bags, and pet leashes. Line the shelves with colorful bins and baskets to expand available space and add visual interest. Consider labeling the bins to maintain order, and swap out the baskets as the seasons change. As you implement these savvy design features, you’ll soon see the benefits of containing the messes of day-to-day life.
Answer: A mudroom.
A mudroom is a buffer zone against dirt, mud, slush, and snow. Beyond keeping your house clean and making it easier to enter, a mudroom provides extra storage and adds to the value of your home. A well-designed mudroom is also a stress reliever, freeing homeowners from worries about muddy floors, dripping boots, and raincoats. Some people create mudrooms by converting a closet or laundry room, expanding a garage, or enclosing a porch, while others add a small addition or bump- out to their house. The cost ranges from a few thousand dollars to convert a closet to $30,000 or more to create a new addition. Here are three essential features to make your mudrooms work well for adults, kids, and pets.
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