Home Buying in 97045>Question Details

Gtrav8791, Home Buyer in

Do you have any owner carry contract listings 0 down with bad credit?

Asked by Gtrav8791, Mon Mar 4, 2013

Help the community by answering this question:


The SAFE Act enacted in Oregon in 2010 has made owner-carry contracts very difficult for both the buyer and the seller. Basically, you must qualify, as the burden is on the seller to prove they collected documents from you indicating you can afford to purchase the real property. If you cannot and run into problems later on, the seller would be liable to you to terminate the contract and pay back all monies you paid on the purchase.

Your best bet would be to work on your credit score and get your debt-to-income ratio in line so that you can qualify through a lending institution. It's actually not as hard as you think. Go to creditkarma.com and pull your free credit report. They will give you pointers about how to raise your score.

Good luck!
0 votes Thank Flag Link Mon Sep 2, 2013
My investor clients who offer lease options always require a down payment. I have some great lenders I could connect you with who can help you work on your credit score. There are also programs in Portland where you can take home buying classes and work on your down payment and they will match what you have saved or provide you with extra down payment just for completing the classes. Please don't hesitate to contact me if you want more information. Good luck!

Mandy Lewis
0 votes Thank Flag Link Wed Mar 6, 2013
No I have quite a number of people looking for the same type of thing.
0 votes Thank Flag Link Mon Mar 4, 2013
In answer to your question, no. If I did have a seller/owner who would carry a contract it would be a challenge to get them to agree to get into a contract with some one who had 'no skin in the game,' or no down payment. Meaning you're putting up no security to the seller that you'll repay the loan your taking out with them. Also, with poor credit, which demonstrates your worthiness to borrow, your in a very poor position to purchase at this time. Most owner carried contracts would require a substantial down payment.

My suggestion would be for you to work hard on getting your credit score up, talk to a lending professional and find out what to do to improve your score & what not to do. Then begin saving for a down payment and closing costs. There are some great loans for those with limited down payments. The ones who qualify need a decent credit score.

I wish you success, keep at it and your goal of home ownership will be a reality.
0 votes Thank Flag Link Mon Mar 4, 2013
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