Obtaining a home loan will be very challenging in the near future because of the new mortgage reforms. Don’t despair if you are one of the many Americans who are unable to come up with the substantial down payment required in order to get a loan. There are a few other options available which you may not have heard of before. Let’s discuss them below.

The government has a program that is led by the U.S Department of Agriculture. There are strict income requirements. In addition, you won’t qualify if you live in a big city. Applicants need to live in a designated rural area. For detailed specifics you can visit the USDA website.

If you have a life insurance policy that is worth a lot of money you could qualify for a Life Insurance Loan. The way that works is that you borrow against the cash value of the policy; the policy is used as collateral. You can pay the loan off over a period of time at a reasonable interest rate. This type of loan is not based on your credit. It is said that you could secure such a loan by simply signing a few documents.

Another program to consider called Lease To Own. It allows you rent a house for a set amount of time. Part of the monthly payment is put into an Escrow account for safe keeping. Towards the end of the lease you have the option of buying the house and applying the money in escrow towards the payment.

The Pay Option Arm is a loan that is affected by interest rates. However, you also agree to one monthly payment amount regardless of the interest. However, if the rate goes up and your payment doesn’t cover the monthly interest, then that interest is added to the principle. As a result, you could owe more than the house is worth. As a result, this is a riskier type of loan, especially if you are in a precarious financial situation.

Are you eco conscious and want to go green? Now you can be environmentally friendly plus get rewarded at the same time depending on how energy efficient your house is. The amount of house you can qualify for is determined by how much you can cut back on energy costs; the more you cut back the more house you get! A Home Energy Ratings System report is used to determine how much energy the home uses. The report will be reviewed along with your loan documents to determine what energy savings you are eligible for and even makes recommendations so you can save even more. You agree to make improvements and money to pay for the improvements will be put into an escrow account. So you pay no upfront money. After the loan closes, the energy efficient appliances are installed in the home in less than three months.

If getting a traditional loan is too challenging then these are a few alternative types of loans that you might want to research.

Author Bio: Written by Lexus Carrera – Check out or video about FHA Rates. Check out our totally free Real Estate Widgets. GMAC offers home loans and low rates,

Category: Real Estate
Keywords: mortgage alternatives, types of mortgage loans, alternative to a mortgage, mortgage loan types