Ask your local and state housing authorities and even local banks if they have special loan programs and how you can qualify for them. Also, many banks have Community Reinvestment Act (CRA) departments, which will provide you with better financing than you would typically find if you are operating in low- and moderate-income neighborhoods. Try to find sellers who would be willing to sell on owner’s terms (where the owner is the lender) or by lease purchase (where your rental payments can be applied toward a down payment in the future).
Help the banks help you. If you are buying, rehabbing, and/or developing properties in low-income areas, remind the banks that they can get CRA credit. Many banks are under serious pressure from the federal government to make loans in the lower-income areas. Many banks aggressively seek out such loans. If you play your cards right, you can use this as leverage when negotiating with the banks.
Help the banks help you. If you are buying, rehabbing, and/or developing properties in low-income areas, remind the banks that they can get CRA credit. Many banks are under serious pressure from the federal government to make loans in the lower-income areas. Many banks aggressively seek out such loans. If you play your cards right, you can use this as leverage when negotiating with the banks.
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