If you canâ€™t qualify for a traditional mortgage with rates where they are today it may not be a good idea to buy anything. Trying to â€œwork aroundâ€ the rules that are there to protect you may not be a good path to follow.
Assuming the seller is in a better position than you is crazy. If you still want to do this, be sure to check them out, how strong are they? How credit worthy are they? Did they turn in their third grade homework on time, okay that last one may be a little much, but not way out of lineâ€¦
Are there good sellers that will do this? Absolutely. Will it work out for you, maybe, maybe not. What you know for sure is it assumes two things, you do what you are supposed to do and so does the seller, thatâ€™s at least twice as much risk for you than a traditional mortgage. If you do not currently qualify for a traditional mortgage then your side makes the odds a lot worse. There is no outside answer to an inside problem.
By the way, I donâ€™t lend in your sate so not soliciting your business, just trying to be helpful. Good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
Jim's answer is a good one, although 'brutally honest'. I have counselled others about this and in many cases it is not the best scenario for the buyer. Everything is stacked in the seller's favor and there are many things that go into why you would want to do this and why the seller would want to agree. Some of the reasons and motivations are not to your benefit. I also feel much the same way about 'lease-option' and 'rent to own'. I wrote this article about rent to own recently - http://j.mp/KytoWP . Sometimes the best scenario is to do a low rent for a while and save your money while going through a credit repair program. Those who have a bankruptcy or foreclosure can often purchase a home again after 2 - 3 years. This is a case where patience is a virtue.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246