Home Buying in Phoenix>Question Details

shenjonah, Home Buyer in Phoenix, AZ

Looking for owner financing and a good deal............

Asked by shenjonah, Phoenix, AZ Wed Sep 5, 2012

Any home owners looking to sell? Looking for owner finance 60-75% of the price and a good deal........single house without HOA or multi-family

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Any quality agent can set up a customized search for you of of seller carryback homes or even lease options available in our market. It's not difficult once the parameters are in place to then run comps on the properties that match to determine if it's a "good deal" to you.

I agree that typically an owner who is willing to risk financing is also wanting a good deal so it's unlikely you will find a win on both items, unless you are willing to give in some other area to make it a win/win for both you and the other party.
0 votes Thank Flag Link Fri Jul 12, 2013
Most sellers would not consider to finance the buyer.
0 votes Thank Flag Link Thu Jul 11, 2013
Looking for owner finance 60/75 of the price and a good
0 votes Thank Flag Link Tue Jul 9, 2013
Owner financed homes tend to not be good deals, the owners will often ask for large down payments, a couple of points in closing costs and a ballon payment in about 5 years. Make sure you have not only a good plan in place but a couple of contingencies before buying an owner-financed home.
0 votes Thank Flag Link Wed Sep 5, 2012
It will depend upon what price range you are looking in. Most of the lower priced homes are being snatched up and a seller does not have to do owner financing as they are getting anywhere from a dozen to several dozen offers within a day or so.

If you are looking for a higher priced property then there is a better chance to get the owner to carry. I have seen a few lately. There may be financing options for you though which would make a larger number of homes available to you.

If we can be of assistance in your figuring out the best way for you to get a home, please don't hesitate to contact us.

Best Regards,


Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133

**** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" ****

Search the official active FlexMLS like a Realtor for FREE through our website at:
http://www.CunninghamHomesAZ.com
0 votes Thank Flag Link Wed Sep 5, 2012
I generally agree with Merrill's conclusions.
If your reason for not using a conventional lender is having gone through a short sale, foreclosure or bankruptcy and needing to wait the mandatory 2 or 3 for a conventional loan, there are 3 yr bridge loans that may be applicable if your credit is otherwise recovered. The interest rate is about 7%, the down payment 30%, but they have an exit strategy to convert you to a convention loan after the waiting period.

This way you can look at buying any home on the market as well as new construction.

Call me if you would like a referral.

Loren Hoboy-Realtor
Your Local Expert
Central AZ Real Estate
LHoboy@centralAZhomes.com
623-688-0004
0 votes Thank Flag Link Wed Sep 5, 2012
To be honest with you, I don't think owner financing is ever a good deal. You most likely could find someone to do the owner financing with the amount you are willing to put down, but there is no way they will want to be competitive with today's interest rates. Most seller carrybacks I have seen have a rate of at least 7% or higher. I think one time I saw one at 6.5%, but that is very rare.

But there are some other strong disadvantages to doing owner financing. First of all, you are severely limiting your options on what properties are available to you, because with how hot the market is right now, there are not a lot of sellers that need to do this kind of financing. But secondly, there is usually a balloon payment in a fairly short term, where the new owner would typically try to refinance once they are able to do so. But what if your situation changes, and you can not refinance or do the balloon payment? I am just guessing the the old owner would be licking their chops to be able to foreclose on you, keep your 25% down, and all the payments you have made, and then turn around and sell the property to someone else.

However, if you really need a carryback, and you are convinced that it is right for you, feel free to contact me and let me know what kind of property you are looking for, and I will see what properties might be available.
0 votes Thank Flag Link Wed Sep 5, 2012
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