There’s no better time than now if you’re looking for a great deal on investment real estate. The fact of the matter is, many do not have the liquid assets that it takes, or the credit rating required to purchase homes in addition to their current mortgages. Fortunately there are several options available for financing and investment property. Today we’ll explore a few that are currently trending.

The traditional route many are familiar with, is to seek a loan at a financial institution. Speaking with a credit union or bank for instance is an excellent option for financing a real estate investment property. Rates vary according to your credit worthiness, and due to the housing-dilemma we’re all facing lenders have tightened their purse strings. Come prepared to these meetings with full documentation for yours and any potential investor’s income and debts. With the traditional route you can expect to need at least 10 percent down, pending your approval.

Other non-traditional methods are often referred to as “creative financing.” It’s important to fully understand your terms when exploring these methods, as they can be riskier than your traditional mortgage. “Seller Carry Back” allows owner financing in which the seller that owns the property carries the note for your potential purchase. If the seller owns the property entirely, they may just prefer to receive a monthly payment on it, and when the amount is paid in full, you will become full owner of the home.

Leasing-to-own is another creative financing option. Generally, the seller and buyer will come to an agreement that a portion of each month’s lease or rent will be attributed to a down payment on the home. The contract will state the sale amount and the time when either the buyers must procure financing or be able to purchase the home in full.

A subject-to form of financing is a great, but short-term solution to financing an investment property. Subject-to refers to purchasing the property on the same terms and conditions that the existing financing is under. The title is transferred but the loan stays in the seller’s name, while the buyer makes payments. Sellers generally aren’t eager to leave a loan in their name for an extended period of time, so using this method is short-term only. This method will help you avoid a down payment, and you can seek refinancing when getting the loan put in your name. This method is most used when the buyer cannot come up with the down payment and the seller is eager to get out from under the burden of a monthly payment.