Kimberly, Renter in West New York, NJ

I was interested in a owner financing home in the Prestonwood Forest area. Would you be able to have info?

Asked by Kimberly, West New York, NJ Fri Aug 23, 2013

Add some detail about your question

Help the community by answering this question:

Answers

3
I have a program available for as little as 5% down and six years to qualify! Call me for more information and lets get started on your path to home ownership!!

Respectfully,

Nicole Culpepper
Realtor
RE/MAX TOP REALTY
(713) 518-9274 CELL
0 votes Thank Flag Link Sun Aug 25, 2013
Kimberly ...

Owner-financed homes are generally attractive to individuals with poor credit ... otherwise, they'd be able to obtain a mortgage through traditional means. I assume that this is your situation.

Contrary to common belief, there is generally a large down payment required ... at least 20%. The owner has to protect the investment, since he/she is selling the home to an individual with poor credit. The interest rate is generally about double that of current rates ... in this case, you'd probably be looking at 8% to 9%. The loan itself is amortized over 30 years (i.e., as if you had a typical 30 year mortgage) but after three to five years, the balance must be paid in full ... this is referred to as the "balloon." You would have to obtain a mortgage ... or pay the owner in cash ... at that time. If you still can't get financing, the owner keeps your down payment, and you're out of your home and money.

I do not recommend this type of transaction for anyone. Work on your credit, and accumulate enough cash for a down payment (about 6% to 8% of the sales price for FHA-insured financing, including down payment, closing costs and prepaid items). You'll be there before you know it. I wish you well.

Al Geffon
Trend Setter Realty
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Fri Aug 23, 2013
I owner financed one of my listings in Prestonwood Forest over a year ago.

20% down and 7% interest was our charge, and the buyer pays into an escrow acct for Taxes, and maintains homeowner insurance. 5 year balloon or renegotiate at end of 5 years.

Every seller will have their own set of terms, but this is pretty basic.

I will be happy to assist you, check out my website and send me an e-mail.
0 votes Thank Flag Link Fri Aug 23, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer