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About Eric Forster
Expertise
Did your last mortgage broker or lender trick you into a messy situation which could cost you your home? I've been close to 30 years in the mortgage industry, and I've seen it all. Believe me, it is not pretty. As the owner of a mortgage company I am called frequently to testify as an expert witness in mortgage fraud cases and other cases where lenders did not fully disclose the terms of the loans they were offering to the borrowers. I have seen fraud being committed by borrowers - and by lenders. It's a tough world out there.

Experience
More than 25 years in loan production and underwriting in Southern California.

Organizations
Mortgage Bankers of America (Southern California Chapter)

Publications
Former columnist for AOL Financial Center and the author of a mortgage primer.

Education/Credentials
MBA (Finance)

You are here: Experts > Shopping > Home Buying/Selling > Real Estate Home Mortgages > Buying a home

Real Estate Home Mortgages - Buying a home

Expert: Eric Forster - 6/25/2009

Question
Besides buying a house on a mortgage, is there any other method of buying a home?

Answer
George,

There are 5 ways of financing the purchase of a home:

1. Bank financing (mortgage). The bank qualifies you for the loan, and then you make monthly payments on the loan to the bank, until it is paid off (usually 30 years).

2. Buyer's financing. In this case, the buyer pays cash for the property and no mortgages are needed.

3. Seller's financing (mortgage). Here the seller agrees to lend you the money to purchase his property, and you make the payments on the seller's mortgage to him.

4. Lease with an option to purchase. In this scenario you lease the property from the owner. The lease agreement specifies that you have the option to purchase the property and that if you ever exercise this option, a portion of the lease payments will be applied toward the down payment.

5. A mix of No. 1 and No. 3. As an example, you get a first mortgage from the bank for 70% of the purchase price, and a second mortgage from the seller for 20% of the price.

A good realtor can help you in putting any of these options into effect.

Best wishes,

Eric

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About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here