What is Creative Financing?
Some people do not understand the difference between creative financing and fraud. I think this quote from Steve Myers on MetFund.com is an accurate summation:
Creative financing does not involve fraud. It isn’t drenched in deception. It’s not used to fool the buyer, seller nor lender. Too often in the everyday world of financing from Northern Virginia around the beltway to Maryland and south to sunny Florida fraud does take the place of being truly creative. Here’s an excellent definition for creative financing:
“Creative financing is when a loan officer puts to use his vast base of product knowledge and his solid understanding of the guidelines. A good “creative” loan officer is one who knows how to take a borrower’s uncommon financial picture and find a mortgage loan that meets her needs. Put a square peg into a round hole; not by force or deception, but with skill and finesse. Creative financing does not involve the withholding or the misrepresentation of information. Especially information that is pertinent to the lender making the loan.”