Miami Beach Real Estate For Buyers 4 Risky Deals When Buying A Home
1. Full Financing
You might have heard of zero-down financing mortgages. Even in todays economic and credit crunch, you can still buy a Miami Beach real estate home without any money down, at the cost of future financial woes. Homebuyers who cannot come up with a down payment are forced to look for another lender who can give them a second mortgage amount. Although piggyback loans can be helpful for those who manage to keep up with their payments, the skyrocketing interest rate of the second loan is enough for anyone to walk away from their homes.
2. First-Time Homebuyer Tax Credit Advance
If youre a first-time homebuyer, the First-Time Homebuyer Tax Credit is one of the most effective ways for you to afford your Miami Beach real estate property. The program offers qualified buyers of up to $8,000. But the seemingly generous perk can get you into trouble, especially if you rely on the tax credit advance in order to afford the property you want. What happens next is the possibility of your not being able to afford both your mortgage and advance payments.
3. Shady Lenders
The growing real estate crisis introduced several mortgage brokers who furnish fake documents or dont disclose any extra fees to the buyer. Those who lost their license are coming back to haunt unsuspecting buyers. By using another name, they charge borrowers with exorbitant interest rates and fees. Typically free services including qualification analysis and mortgage information are also coupled with charges.
4. Hard Money
If youve suffered from bad credit and lost your job but want to purchase a Miami Beach real estate property, for instance, you may find salvation with hard money lending; but that is rarely the case. Hard money lenders dont highlight the importance of the borrowers employment status or credit score, but rather offer them with the loan they need, at the cost of a ridiculously high interest rate, which will surely trap any buyer in a financial morass.
Mark Michael Ferrer
Miami Beach Real Estate
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