It is the dream of a large number of people to one day is able to own their own homes. Sadly though due to the current recessionary trends prevailing in the market this dream may just remain an elusive dream for many people. Unless of course they take advantage of the many financing methods available in the market which will help them achieve their dream. Some common methods and techniques to raise finance are as follows.

Bank Loan

If your credit rating is good enough then this may mean that you are able to qualify for a bank loan. In order to qualify for a bank loan you need to submit your account details and your income and expenditure details, then the bank will review your application and decide whether to loan you the money or not and the rate of interest that they are going to charge you as well as the repayment period. Keep in mind though that due to the recession prevalent in the market today many banks tightened their policies in regard to lending money and it is becoming increasingly difficult to obtain a loan nowadays.

Government Loans

The Federal Housing Administration loan is the most common form of loan that the government gives out, technically though it is not a loan and is more like a guarantee that is given to mortgage lenders (such as banks) by the government that the homeowner will not default. One of the many advantages of these government loans is that people who are buying a house or an apartment for the first time need to only make a down payment of just three percent and in some cases the applicant can even be selected for 100 percent financing meaning that do not have to put down any amount as a down payment. Also the FHA does not have as stringent qualification policies for loans as opposed to many banks and other financial institutions. A good credit rating is not needed as long as you have paid copies of utility bills for the last few months. Keep in mind though that just because the government insures the loan it does not mean you can fall back in your repayment plan.

Personal Investors

These can be trusted family members or friends who you have known for some time and who are willing and able to help you out financially in order for you to secure your home. It is advisable to have an attorney make up a contract so that there are no miscommunications or problems between the two of you in the future. Also due to the investors being close family members or trusted friends they may be lenient with you if for some reason you are not able to make a payment on time or have other financial difficulties. In this way you would be able to save precious time that is spent in having a loan application approved by the bank or any other financial institute.