1.         Lease/purchase agreements: A lease purchase allows you to rent and occupy the home while having a contract to purchase the property for a set amount at a predetermined time in the future. There are two documents involved: a lease or rental agreement, and a purchase contract to buy the property at a later date. Lease purchase agreements vary from transaction to transaction, so there is not one standard form of contract. Typically, part of each rental payment is put aside for the purpose of accumulating funds to pay the down payment and closing costs.

        2.         Second mortgage: A mortgage that has a lien position subordinate to the first mortgage. A second mortgage may be used to take equity out of the property or to provide additional funds for the purchase of a property. Sometimes second mortgages are used when a borrower assumes a first mortgage with a lower interest rate and needs to make up the difference between the loan and the sale price.

        3.         Bridge loan: A short-term loan secured by the borrower's current home (which is usually for sale) that allows the proceeds to be used for building or closing on a new house before the current home is sold. Also known as a "swing loan."