the same as a HELOC, but can be beneficial in certain circumstances! Talking to your local lenders and learning more about each option (a HELOC and Cash-Out Refinance) will help you understand the differences in each process and decided which type of loan could be best for you and your exact scenario. Of course, these two options work only if a) you currently own your primary residence (for HELOC or Cash-Out) or a rental property (Cash-Out option only) ; and b) there’s capital (equity) in the property. For example: if your primary residence (house) is worth $200,000 and you only owe $100,000 on it, you could apply for a HELOC and take out a $50,000 loan against your equity. 2: Lease-Option Another route is a lease-option, also known as option to buy. In this situation, you would rent the property, but sign an “option to buy” at a later date for an agreed-upon price. This legally binding path to property ownership might take a little longer, but is still a viable option if you have a small amount of funds. 3: Seller Financing If your credit is lower, but you have access to some cash, seller financing could be a great option for you. Seller financing is similar to getting a loan through a bank — except you agree to the payback and terms directly with the seller of the property you are trying to buy. This type of loan should still include a repayment schedule, interest rate, and consequences, should either party default on their agreement. Since you are communicating and negotiating the terms of the loan with the seller, you can often negotiate a better interest rate and/or better terms than you might be able to get with a traditional bank loan (especially if your credit is lower). Often, these agreements include a medium to significant down payment (sometimes higher than traditional mortgages) to show the seller you are serious and have "skin in the game". Many of these agreements also involve the seller holding on to the deed until the buyer has
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