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Sweat equity is a term that refers to the value of the physical work a homeowner puts into their property. This could be anything from painting walls to building a deck. Usually, when someone buys a home, they pay for it in part with money for the down payment and…
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Rent-related credits are parts of rent payments that can help a buyer when they’re ready to purchase a home. These credits come in two main types: Rent Credit with an Option to Purchase and Rent-Back Credit. Each type has its own rules and purposes. This type of credit is when…
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Trade equity refers to using the value of one property to help buy another property. This is usually done through a trade-in process, similar to trading in a car when buying a new one. For home buyers, this means if you have a property and you’re looking to buy another…
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When someone is selling their current home but hasn’t sold it yet, the lender can still move forward with their mortgage application by considering the money they expect to get from the sale. However, the lender has to record the exact amount the seller ends up receiving. To work out…
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When you’re buying a home, you often pay a deposit as part of your offer. This is called an “earnest money deposit.” It shows the seller you’re serious about buying the house. This deposit can help cover your down payment and closing costs when it’s time to finalize the purchase…
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Employer assistance is help from your job that can be used to pay for part of the upfront costs of buying a home. This includes help with your down payment (the initial payment when you buy a home) or closing costs (the fees you need to pay at the end…
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When you’re buying a home, you usually need to show that you have a certain amount of money for a down payment. This is your part of the home purchase price. However, if you’ve received a lump-sum grant or loan because of a disaster, you can use this money to…
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When you’re buying a home to live in, you might be able to use money given to you by certain organizations to help pay for the down payment, closing costs, or to keep as reserves in case of emergencies. This kind of help is called a grant. However, the person…
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When someone sells a house and wants to help the buyer afford it, they can offer something called a “gift of equity.” This means the seller uses part of their ownership value in the house to help the buyer with the costs. For example, if a parent is selling their…
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When buying a home to live in or as a second home, you can use money given to you as a gift to help pay for some of the costs. These costs can include your down payment (which is part of the purchase price you need to cover upfront), the…