What is making you only want to consider owner financing? Is it a bad credit score? Don't assume that a shaky score is an automatic disqualification to a home loan. Always better to let the professionals tell you no than to incorrectly assume otherwise.
Often, the owner financed homes will charge you interest rates above that of lenders. Also, they will often times charge a higher down payment than the commercial lending institution.
If you have your heart set on an owner financed property, I can help you find one that meets your needs.
If you have any other questions, call me at 334-655-7091 or visit my website at MovingtoDothan.com
Kevin Luby - REALTOR
James Bowman Realty, Inc.
I do not suggest doing lease purchases. 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 http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://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 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Here's a link to a blog I wrote on how to find lease-options: http://bit.ly/FindaLeaseOption
One additional point: Don't take it on faith that you're dealing "with honest people that will help look out for our interest." And specifically, have a real estate lawyer who's familiar with lease-options and owner financing review all the paperwork. There are many protections that you can have built into the option to protect you.
Hope that helps.
We would like to help any way we can! In a lease purchase, most owners will require you to put earnest money down and this amount varies, depending on the price of the home. Do you have a down payment? How much are you wanting to pay each month as a payment, one you are comfortable with and not stretched financially? Please keep in mind, you will have your insurance and year end taxes above this amount. This information will get us started.
You can call me at (334) 798-0838 or email directly at firstname.lastname@example.org.
Dothan Real Estate Team