Home Buying in West Paris>Question Details

Foxfam1, Both Buyer and Seller in West Paris, ME

There is a property in my town that is selling for 60,000....it needs ALOT of work . The owner is willing to finance with some money down....she has

Asked by Foxfam1, West Paris, ME Fri Dec 25, 2009

not stated how much....she says she is desperate to sell....I own with no morgage an old trailer with 2 built ons on an acre of land with older out buildings (2). IT IS VALUED AT THE TOWN OFFICE FOR 52,000 WE are a family of 5 with one income of 41,000 a year. We need to move to a bigger place because our family is outgrowing this trailer. wE HAVE POOR CREDIT and could not get a regular loan. What would you recomend? We all like this new larger house and can handle the work it needs.

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Hi Foxfam- I may have an option for you. In nearby Rumford/ Mexico area-
#1- Currently a 2 or 3 family. Will sell for $35K. Needs about $12K worth of rehab work. Overlooks the big river. About 2/3 acre. No garage. Parking for 2 spaces.

#2- Was used as a 6 family. You could stay in half of it and rent out the other half. Will sell for $32,500. Place needs about $45K worth of work. That might be too much for you in rehab... I don't know. You could spend about $5000 in rehab to be able to move into it, and then work on the other stuff little by little...

The 2 family we could do owner financing, after you put down about 10%.

The larger one- I would need $15K in cash and could do all the rest owner-financed.

BOTH of these are on town water and sewer, and in decent neighborhoods. If you're interested further, please email me for details. Thanks, and good luck,

Ken L.
0 votes Thank Flag Link Wed Dec 30, 2009
Fox, if the question is affordability, as long as you don't have a lot of other debt (car loans, credit cards, etc.) then you should have no problem with a 60k home -even if it needs 40-50k in repairs- if your current income is 41k.

If you structure this properly, it would seem like you have a wonderful opportunity which you can take advantage of.

Explain to the owner that you will try to sell your current home as soon as you are nearly finished repairs on her home.

She may convey ownership of the new home immediately with a small downpayment if she knows that she may be getting a lump as soon as you sell your current home.

Also, ask her if you can start making payments in six or so months. This will give you some time to make the necessary repairs without having any new payments other than taxes and insurance on the new property.

If you've owned your current home and lived there for five consecutive years out of the last eight years, you will be entitled to $6000 from the IRS ( the maximum credit is $6500 but in your case it would be only $6,000 because you only get up to 10% of the purchase price of your home) after you close on the home. Speak to your tax professional about this.

You can use this money to pay her back some of the money she financed for you. Hopefully you will get a decent amount of money for your current home and use that as well to pay her back.

When you are done, you will hopefully be left with a small balance to pay the owner off.

I don't think it should be too hard to pull this off. Please keep us informed with your decision and let us know how it works out.

Hope this was helpful.

Good luck.
0 votes Thank Flag Link Sat Dec 26, 2009
Hi Dan is right, older mobile homes can be hard to finance but it is usually possible. Depends on what you mean by old and the condition and size of the home. Have you talked to an agent? They could give you a good idea of what the best way to market your property is and for how much. Most agents will give you a free market analysis. I'd be happy to give you a referral for a good local agent.
As for the house you would like to buy; have you had a building inspection so you have a clear idea of just how much work is needed? Again, an agent can help and advise you on this purchase.
0 votes Thank Flag Link Sat Dec 26, 2009
Define "old" trailer. I have seen that older than 1979 is almost impossible to finance. I heard similar about 1985. Check with a financial person to find out for sure.

If you can sell your current property you could either 1 try to sell and buy with the proceeds. 2 get a equity loan and use it to buy the new place 3 ask for owner financing and see if she will do that with something as collateral you own.

Be aware that you might be able to rent your current property. You might not. Do not get in over your head with debt. If you can get an equity loan only get a FIXED rate loan.
0 votes Thank Flag Link Fri Dec 25, 2009
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