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Home Purchase Options You Might Not Know About

Home Purchase Options You Might Not Know About

When most people think of buying a home, their minds immediately go to the standard process of saving for a down payment and getting a traditional mortgage. But there are other options available that can help you reach the goal of homeownership. Some can make saving the down payment a non-issue while others help current homeowners looking to move from their current home to a new one.

So, before you begin walking the most traveled path for purchasing a home, see if these options will help you get there faster.

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Ways to Skip Saving for a Down Payment

One of the biggest hurdles between most people and homeownership is the down payment. Most conventional mortgages require borrowers to put down 20 percent of the sale price of the home. And that is no small feat.

However, certain loans require smaller down payments. For example, FHA and VA loans often have less stringent requirements, as well as USDA loans. Specialty loans on Fannie Mae and Freddie Mac foreclosures are also available without a full 20 percent down payment. The exact amount required can vary over times, so it is important to see what options are available at the precise time you are looking to buy.

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Another Option for Down Payments is Gifts. Certain family members can provide funds for use towards the down payment without some of the time-based eligibility restrictions that can affect the buyers own savings. However, only certain familial relationships qualify, and the person providing the gift must legally attest to the fact that the money is a gift and not a loan.

Those within certain income limits may qualify for down payment assistance through local government organizations. Certain states, counties, and other municipalities provide funds for down payments to individuals who meet specific criteria. Often, only those buying a primary residence can apply, and a minimum stay in the property may be required before a sale. Failing to meet the terms often means the funds must be paid back, so it is important to understand the details prior to accepting assistance.

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Bridging the Gap When Selling One Home to Buy Another

Another situation that complicates the home buying process is when the borrower is currently paying a mortgage on a primary residence they intend to sell. Trying to coordinate the timing of a sale and purchase isn’t easy, and juggling multiple mortgages only makes things more complex.

It is common for current homeowners to have their “down payment” tied up as equity in their current property. That means they have an appropriate amount of assets, but it might not be accessible as cash. Additionally, certain home loans have restrictions regarding whether they have to be associated with primary residences. Additionally, some banks may be hesitant to offer a favorable mortgage rate on the new loan if the amount remaining on the current mortgage is high.

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In some cases, the best course of action is to consider bridging loans for the house purchase. What these loans provide is a short-term financing solution to help you transition from one mortgaged property to the next.They can be used to tap your current properties equity to obtain a down payment or can pay the current mortgage off making it easier to obtain one on the new property. Then, once the current property sells, the borrower simply pays off the bridging loan and continues with their new mortgage.

Otherwise, the best alternative is often to wait until your current home sells before jumping into the market. In those cases, you may need a temporary housing solution for the interim.

The Traditional Method

While some of these alternatives can make buying a home easier, there is also nothing wrong with going the traditional route. In fact, it can be the smartest move financially in most cases. So, if you aren’t sure about any of these other methods, or don’t have access to them, go ahead and save the 20 percent first. In the end, there is no such thing as having too much savings for a down payment.

Featured photo credit: http://goodmanrealtyaz.com/ via goodmanrealtyaz.com

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Shelly Green

Entrepreneur writer and a blogger

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Last Updated on January 11, 2021

11 Hidden Benefits of Using Oil Diffusers

11 Hidden Benefits of Using Oil Diffusers

Affordable, relaxing, and healthy, oil diffusers are gaining popularity with people everywhere due to their extensive benefits. Oil diffusers work through the simple process of oil diffusion, which uses heat to turn oil into a vapor that is then spread around a living space. Diffused oil can have several relaxation and health-related benefits, including safe scent-dispersion, mosquito and mold defense, stress relief, and more!

Read on for 11 hidden benefits of using oil diffusers.

1. Safe Scents That Make Sense

Unlike candles or air fresheners, oil diffusers release cleansing molecules into your air that work to purify it, not overload it with unhealthy chemicals. Electronic diffusers also do not pose the fire risk that candles do. Plus, they contain the added feature of interchangeability, which means you change oil types for different scents and health benefits.

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2. Stress Relief

Several lab studies have confirmed that diffusing essential oils like lavender have been shown to reduce stress and help relieve anxiety in medical patients. Preliminary studies have also shown that oil diffusers can help alleviate symptoms of depression.

3. Improved Sleep

Diffused oil has relaxing properties that can help people of all ages fall asleep quicker and sleep more soundly. Electronic diffusers not only have the option to mix and match different oil blends (Try a lavender, Bulgarian rose, and Roman chamomile blend to help with insomnia), they also run at a gentle hum that helps relax an agitated mind. Many also come with an auto shut-off feature to help conserve oils once you have fallen asleep.

4. Appetite Control

Much like gum, oil diffusers can help stimulate the senses in a way that works to curb appetite. New research has shown that diffused peppermint oil can help curb appetite by inducing a satiety response within the body. Diffused peppermint oil has also been shown to increase energy.

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5. Bacteria and Mold Killing

When essential oils are diffused in the air, they break down free radicals that contribute to the growth of harmful bacteria. Eucalyptus, thyme, and tea tree oils are especially good for this purpose. Diffused oil is also highly effective when it comes to combating fungal yeast threats, as the oil help makes the air inhospitable for yeasts such as mold. Pine and red thyme essential oils are best for combating mold.

6. Decongestion and Mucus Control

Ever tried Vick’s Vapo-Rub? Its decongesting powers come from active ingredients made from the eucalyptus tree. In principle, oil diffusers work the same way as Vapo-Rub, except they diffuse their decongesting vapor all around the room, not just on your chest or neck. Oil diffusers have been known to cure pneumonia in lab mice.

7. Mosquito Repellant

Nobody likes mosquitoes — but when the trade-off means using repellants full of DEET, a toxic chemical that can be especially harmful to children, mosquito control can often seem like a lose-lose. However, scientists have shown that oil diffusers can be used as a safe and highly effective mosquito repellant. Studies have shown that a diffused oil mixture containing clove essential oil and lemongrass essential oil repelled one type of Zika-carrying mosquito, the Aedes aegypti mosquito, at a rate of 100%.

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8. Pain Relief

While applying oils directly to areas of your body may be the most effective way to alleviate pain, diffusing essential oils can also be an effective means of pain relief. When we inhale healthy essential oils, they enter our blood stream and can help internally relieve persistent pain from headaches, overworked muscles, and sore joints.

9. The New Anti-Viral

Research into the anti-viral effects of oil diffusion is now just gaining steam. A recent study showed that star anise essential oil was proven in medical experiments to destroy the herpes simplex virus in contained areas at a rate of 99%. Another study showed the popular DoTerra oil blend OnGuard to have highly-effective influenza-combating powers.

10. Improved Cognitive Function

Diffusing essential oils has also been shown to improve cognitive function. Many essential oils have adaptogenic qualities, which can work twofold in soothing us when we’re stressed, and giving our bodies a pick-me-up when we’re feeling down or sluggish. By working to level out an imbalanced mood, diffused oils also help us to focus. There are also several essential oils which have been shown to help balance the body’s hormones. With prolonged use, these oils can work to repair the underlying causes responsible for hindering cognitive function.

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11. Money Saving

With ten clear benefits of oil diffusers already outlined, there is one more that should now be obvious: using an oil diffuser will help you to save money. As an anti-viral, bug repelling, and stress-relief solution rolled into one safe product, an oil diffuser used with the proper oils will save you money on products you might otherwise be buying to help cure those pesky headaches or get your kids to fall asleep on time. If you’re wondering just how affordable oil diffusers can be, check the buyer’s guide to the best oil diffusers — you’ll be sure to find one that fits your budget!

Featured photo credit: Jopeel Quimpo via unsplash.com

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