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R AISING M ONEY

two-in-one program allows you to combine a home’s purchase
price and renovation costs all in one mortgage.
4. FHA qualifying assumptions. When market interest rates are
high, look for sellers with FHA mortgages originated when
rates were lower. Pay the sellers for their equity (or whatever
amount you negotiate) and then assume the seller’s mortgage.
Qualifying for this type of mortgage is a lot less complicated
than originating a new loan, and you gain the benefit of ac-
quiring a mortgage at below market interest rates.
5. FHA/VA nonqualifying assumptions. Prior to 1987, when the
FHA and Veteran’s Administration (VA) stopped making
them, millions of these loans were originated. Though most of
these loans have been repaid, a few sellers retained them. The
nonqualifying assumable loan is the easiest and least costly
loan you can get. The reason: There are no questions asked of
the borrower, and all that’s required is payment of a small as-
sumption fee. See a list of repossessed VA-owned properties at
their web site at www.vahomeswash.com.
6. HUD homes. When FHA borrowers fail to make their loan
payments, the Department of Urban Development (HUD),
the parent of the FHA, takes over ownership of these proper-
ties. HUD properties can be purchased with as little as 3 per-
cent down. For more details, ask a HUD registered realtor, or
see their web site at www.hud.gov.
7. VA mortgages. If you’re an eligible veteran, you can borrow up
to $240,000 with no money down to buy a home. To get the
ball rolling, remit your discharge papers to the VA to get your
certificate of eligibility. No-cash-to-close and ease of qualify-
ing are two more ofthe benefits given to those who served hon-
orably in the U.S. military.
8. VA qualifying assumptions. Existing VA loans can easily be as-
sumed by veterans or nonveterans. When market interest rates

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