When you investing in real estate, you can pool your resources with other people and share ownership of the house. Popularly know as "mingling," this method differs from the shared-equity method in that all owners occupy the house. There is no "investor." The rule here is "good contracts make good co-owners." Even shared ownership between friends or relatives should be based on a sound contractual agreement. The issues that must be anticipated and spelled out in writing include how the mortgage and down payment are divided, how utilities and maintenance costs are shared, how each party may use the property, how the profits and tax benefits are shared, how sales decisions are made, and how to deal with a co-owner who cannot or will not meet his or her obligation to the property.

The contract also specifies how title is to be held. The two most popular arrangements are the "limited partnership" and the "tenancy in common agreement." Since there are no standard shred-ownership agreement form, consult a real estate attorney when structuring the partnership contract.

Another shared housing avenue is the limited-equity cooperative. Typically, a co-op is created by a nonprofit community group or a group of tenants seeking to purchase their building. Structured to limit the profit members may realize upon selling their shares, limited-equity cooperatives put home ownership within the reach of low income people.

The remaining sources of home loans that will examine embrace both liberal qualifying guidelines and lower interest rates. Even if you can qualify for a conventional bank loan. Seller financing is an excellent source of financing. They might save you thousands of dollars.