Whether you are a bit cash-strapped or are just looking for more creative ways to finance your new home, you’re in luck. With the recent recession, there are more ways than ever to get yourself into a home of your own. Here are five ways you can finance your home that you may not be aware of:

1. Lease-Purchase

In days gone by, many sellers were not interested in this option. As the recession has drug on and it has become more difficult to unload an unwanted house, more and more sellers are realizing that this may be their best option. In a lease-purchase, the buyer moves in before closing, pays what amounts to rent rather than mortgage payments and those payments, in part, are put towards a down payment.

The actual purchase date of the home is contractually specified but, in the mean time, buyers benefit by:

- Having a larger down payment than they would have otherwise
- Moving into the home sooner than they would have
- Locking in the purchase price at the current value of the home

2. Assumable Mortgage

Assumable mortgages can be difficult to find but are a great option when they are located. In this type of mortgage, you assume the current owner’s mortgage exactly as it is, interest rate and all. There are virtually no closing costs and your monthly payment may be lower than it would be otherwise.

Do be aware, however, that there is a con associated with this type of mortgage: your down payment must make up the difference between the current value of the loan and the seller’s asking price. For example, if the current mortgage has a balance of $70,000 and the seller is asking for $100,000, you must come up with a down payment of $30K.

3. Two-Step Loan

This is a 30-year loan that is a marriage between a conventional loan and an adjustable rate mortgage. What happens is this: you take out a loan and your interest rate is fixed for a period of 5, 7 or 10 years depending on the terms of your agreement. The initial rate is then raised to the current market rate one time for the remainder of the loan.

This loan is great for those who need time to rebuild their credit or plan on selling the home rather quickly. If, though, your credit doesn’t improve, and you aren’t able to refinance, you may be stuck with that higher interest rate for quite some time.

4. Balloon Mortgage

Depending on the lender, your rate and payments will be lower for a specific amount of time, usually between three and ten years, after which the principal balance becomes due in full. Depending on the conditions, you may be able to refinance your principal into a conventional mortgage rather than paying the balance in one lump sum. Most buyers use this type of loan to their advantage if they aren’t planning on living in the home permanently.

Plan on keeping your credit score in near perfect standing if you take out this type of loan. If you aren’t able to pay off your principle or refinance your loan into a conventional loan, you will face foreclosure.

5. Biweekly Mortgage

If you want to shorten the life of your 30-year mortgage, this is the loan for you. Rather than making your mortgage payment once a month, you make bi-weekly payments. Rather than making only 12 payments a year, you will make 26 “half-payments” or what equals out to be 13 payments.

When making bi-weekly payments, you must be sure that your lender is processing them correctly and designating the extra portion to your principal and not interest or escrow. If your lender does not credit your account properly, this type of mortgage is pointless.

If you are looking for unique ways to finance your home, these five should give you a good starting point. If you want a home but are afraid that you won’t qualify because of your credit or that you simply can’t afford the payments, consider one of these options. It’s easier today than ever to become a home owner!

A Georgia resident, Mary Cratz has worked in the real estate industry for over ten years. During her tenure, she has gained a lot of experience in finding the best atlanta loans for her clients.