It’s a wonderful thing if you can buy your retreat property in cash. Even if you fall a little bit short, some owners (if they own the property outright) might be willing to negotiate something called an “owner carry.” Basically, the free-and-clear owner sells you the property and gets the equivalent in a mortgage note in exchange, where you commit to pay the remaining principle at a higher interest and a VERY short time frame. A buyer and seller can negotiate whatever they want, but this is the typical scenario for an owner carry.
For everyone else, thanks to inflation and the housing boom, we need banks or other big institutions to front the money. Gone are the days when younger Baby Boomers were buying nice houses for a five-digit sum. Today, the same quality could easily be six times more costly. Don’t believe me? If you own a house, ask your selling agent what the CMA currently is for your house (or check your last initial purchase appraisal) and compare that to what your insurance company estimates as the cost to rebuild. Not even close? That’s thanks to inflation and malinvestment.
So what’s the average buyer to do? Start calling banks in your area? Hold the phone a second. Here’s some smarter possibilities.
- Your real estate agent or broker has done a lot of interaction with local and national banks. See if they have any suggestions for the area where you are buying, especially if you’re looking at a conventional loan.
For those not going with the conventional loan route, here are some other possibilities.
- Veterans have an option for VA loans. Check here for more details.
- FHA loans might be a preferred option in certain scenarios. Find out about them here.
- Some folks might be eligible for a USDA Farm Loan. Those can be checked out here.
- USDA also issues home loans under certain conditions. Read here for single family homes, and here for multi-family homes.
- Some states also have their own home loan programs. For example, see what Idaho Housing and Finance has to offer here.
Even if you, like most Americans, must seek financing assistance, keep in mind that lowering your overall cost of living with a more self-sufficient survival retreat will help you reach free-and-clear ownership much faster. And then you can live like our patriotic forefathers.