Using owner financing to buy your home is the prime way you can buy your home with no qualifying and no credit. The biggest stumbling block to this has always been finding a seller willing to entertain any creative financing.
Times are changing. I just ran across an article by Igor Buces that encourages sellers to do just that. Following are excerpts from his article so you can see the problem a little bit from the side of the home seller. If you understand where a seller is coming from and what his/her problems are, you can do a deal!
Given the present economical conditions and the large amount of homes for sale, you need to become a creative seller to have your home sold quickly and for top dollars. To do so, you must be able to offer people different alternatives and reasons to buy your home.
One of the best ways to attract buyers is by offering buyers owner financing. National statistics show that sellers offering owner financing attract three times the number of potential buyers. With three times the buyers, it's more likely that you'll sell your home faster.
The reason this method works so well is because many people are scare (sic) to fill a mortgage application or have been turned down in the past for a loan and don't want to repeat the same experience.
However, there are some disadvantages when using owner financing. The main problem has been that it forces the seller of the home to hold a note for a long period of time. Since most people need the money to get into a new home, the owner financing option has not been a realistic solution for people needing to sell their home quickly.
However, to go around this problem you can simply contact a note buyer in your area and set it up so that the note buyer will buy the note you just created at the point of closing. Usually, you'll end up getting about 91% of the value of the home. Although this may seem as a big discount, you need to realize that by offering owner financing, you'll sell your home sooner and for a higher prices since there will be more people interested.
There you have it. An authority pointing out the current reality to home sellers and presenting a solution to the problem. Keep this is mind and maybe even offer up the solution yourself to a reluctant owner of a "For Sale By Owner" home.
Don't feel that your alone or are blazing a new trail her. Tens of thousands have gone before and bought their home with no credit and without having to qualify for a mortgage.
If you would like to read to complete article by Igor Buces, go to Miami Mortgage.
Originally posted 2007-07-26 10:38:11. Republished by Blog Post Promoter
