I would not recommend making an offer on a home you have not actually seen. Pictures can be deceiving. I suggest you find a good local real estate agent to work with and go see the home. Then, if you like it, if the price is right, and so forth, they can help you with the offer.... more
I do not suggest doing lease purchases/rent to own. There are simply way too many things that can go wrong with one from either side.
In order to do true owner financing, the owner must own the property free and clear of any mortgages. Very few sellers are going to be in that position.
If the property currently has a mortgage on it, the owner cannot legally transfer the title to a buyer without the mortgage first being paid in full. Most all mortgage loans have a due on sale clause. This due on sale clause requires that the mortgage be paid in full should a title transfer occur.
The buyer is also at great risk on a lease purchase transaction should the seller quit making their mortgage payments. Right now, many sellers cannot afford to make their mortgage payments or simply chose not to continue making them. I have seen where the buyer is making their rent payment, but then the owner is not paying the mortgage. The next thing the buyer knows is that the home is in foreclosure. That means the buyer will generally not get back any of the money they have given as earnest money or security deposits.
It is also a big risk on the buyer. If your credit is not where it needs to be now, there is no possible way of you knowing it will be acceptable in a set amount of time.
Before entering into any type of agreement like that, the buyer needs to make sure that they fully understand the potential pitfalls that could arise. Should the seller default on the mortgage, the buyer could lose ALL of the money that they have invested. Until you are able to purchase, renting is generally the safer option.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options to see if purchasing might be a possibility for you. To get Pre-Qualified for your purchase, you can submit your request online at www.rodneymason.com to get started.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.... more
If you are a first-time home buyer you should consider getting an FHA loan. This loan is designed to help out first-time home buyers because FHA loans usually means low down payments, low closing costs, and easy credit qualifying. FHA loans will usually allow for lower credit scores as long as it is over 500.
Also, for your scenario FHA loans make allowances for loan applicants with a non-traditional credit history or insufficient credit. These types of loan applicants may be able to be approved for an FHA loan if they meet FHA requirements for such circumstances. Some of these requirements include references that can be taken from the following: rental housing payments, utility company references (gas, electricity, water, cable, etc.), school tuition, automobile leases, insurance premiums, retail store credit cards, and a documented 12 month history of savings from a bank. These are all ways in which a lender will review your credit without actually having credit.
Well I hope this helps! If you have any more questions or if you need a loan, feel free to contact me through the contact information on my profile page!
*The information I gave above was taken from the HUD Handbook so if you want more information check out section 1-C-9 from the handbook in this link:
Seller paid closing costs are negotiated just like sales price. HUD, Fannie Mae, Freddie Mac, will often pay 3% of the sales price in closing costs if asked. Some sellers will pay all of closing costs if asked. If you are in a situation with multiple offers, asking for seller paid closing costs will reduce the seller's net, so even though your offer price is higher, you could still lose the bid off.... more