Home Selling in 07712>Question Details

Nada, Home Buyer in 07712

In your recent experience are buyers able to get home loans?

Asked by Nada, 07712 Sat Dec 6, 2008

Should we be creative and offer qualified buyer ability to rent (w/downpayment) and we continue to pay mortgage for fixed time (1 yr) to give them more time to get financing? Does that make sense?

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13
Yes, there are mortgage loans available to QUALIFIED buyers (versus just good credit). Each person's financial situation is different and unique to them. I just had a buyer get a mortgage loan in 4 days, after their previous mortgage rep screwed up their application beyond recognition. Their previous mortgage person was trying to get "creative" because my buyers were border line with their ratios (their credit score was high, but their debt ratios were close - - which is why we don't just focus on "good credit"). To make a long story short, our team got the buyers to the settlement table in 4 days.
Web Reference: http://www.i-teamhomes.com/
1 vote Thank Flag Link Sat Dec 6, 2008
people with good credit and a down payment are not having a problem getting a loan right now, it is teh people with no money or credit under 700 that are finding it difficult. Offering to pay closing costs is one creative way to be able to attract more buyers. If you are in the position to do a lease purchase than be all means do it. but make sure you have a great lease that protects you as the seller. you want to make sure the buyer is prequailified and they have a credit score that will allow them to get a loan in a year but just doesnt have the savings for a down payment and closing costs. if you rent to someone just out of bankruptcy, a year or two down teh road now you have to get rid of a tenant and then try to sell all over again. good luck
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Sat Dec 6, 2008
Yes, there is mortgage money available to people with good credit.
Depending on how desperate you are to sell, and how realistically you price your home, you could offer to sell with a lease/purchase or lease option, but you would be better off for many reasons to sell outright.

If a buyer is qualified to buy it will not take a year for them to get financing. If a buyer is not qualified a year might not be enough time. The important thing is that you understand the benefits/disadvantages in doing a lease purchase or a lease option. Feel free to contact me to discuss each and how they might work or not for you.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Sat Dec 6, 2008
Since there is money available, you might want to offer to assist with closing costs and provide a home owners warranty.

Laura Giannotta
Keller Williams Atlantic Shore
1 vote Thank Flag Link Sat Dec 6, 2008
Boxter,

Absolutely! There is plenty of money for banks to make loans on but they are no longer able to make "high risk" loans. People with good credit, deposit money, and a job will not have trouble obtaining funds.

Good luck
1 vote Thank Flag Link Sat Dec 6, 2008
The answer is yes, loans are available, to qualified buyers. As the sellers you can do what you feel comfortable. If you do decide to do a lease with an option to purchase be sure they will be able to finance in a year. I work with agents and brokers who send their clients to me under this same scenario. You want to be sure they can actually qualify for the loan in the time frame agreed upon. In this market we all have to think outside of the box.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Broker of 10+ years
http://www.everlastingcredit.com

We also have DIY Packages available.
0 votes Thank Flag Link Fri May 3, 2013
Mark have you a good answer. Add to that:

The appraisal has to come in "correctly" as well. If the appraisal comes in low, your buyer may have to come up with more cash down ot they may walk - or you may have to give back. You can always ask the agent to "give back" to make a deal go. Good luck with that.

Also, if you have deal with a local bank - it might be easier to work with. Shop around - online, with local and national banks. Be careful of handing out your personal info as you don't want a million credit inquires,
Web Reference: http://www.rentlaw.com
0 votes Thank Flag Link Wed Jul 28, 2010
Hey Boxtser Girl - another good question. But be careful. Be very careful. Banks have certainly tightened down on their lending requirements, but qualified buyers are still about to get financing. And you want to be sure that you're not financing your home to a 'non-qualified' buyer. Mortage company's are pretty good at it - so let them do it.

Again - if your home is in tip-top "sellable" condition, and you have it price appropritely, and it's marketed correctly - it will, in most likelyhood - sell. Again.....best of luck!
0 votes Thank Flag Link Thu Mar 18, 2010
YES! With all the bad press most are afraid to sneeze and say loan at the same time. But, if you have a decent credit rating you should contact a local REALTOR and ask for a reliable Loan Officer to get that pre-approval upfront, before you look at homes.
0 votes Thank Flag Link Tue Dec 16, 2008
You absolutely can get a loan right now. The loans that have left the market were zero down, stated income, adjustable rate, and anything subprime. What is subprime? Subprime is below average income, below average credit rating approved loans. Nowadays you need to have a score in excess of 700 as a rule of thumb. You need to have 10% down unless using FHA or VA. Truthfully banks look at loans on a case by case basis. If you have a score of 660, you’re putting down 20%, and you have money saved. The bank is likely to accept your application. Best thing to do is go get pre-approved. You know what you have to work with and buyers will take your offer more seriously.

Matt Miner
0 votes Thank Flag Link Tue Dec 16, 2008
As others have said, there are mortgage options out there for "qualified" buyers. FHA has some interesting options. In todays market a buyer needs to be qualified......what a concept! If they are not qualified for "X" amount at "Y" terms who's to say that they may not be a qualified renter either?
All depends on your financial situation as others have mentioned and the quality of the buyer. But to directly answer your question. Yes, buyers are able to get home loans, if qualified.
0 votes Thank Flag Link Tue Dec 16, 2008
Boxster Girl - I am a lender. There is PLENTY of money to go around. Lenders can still close loans with people below a 600 credit score (I just closed one at 589) and people with great credit can still get "perks" that others can't. The biggest difference from a year or two ago? There is limited stated income loans and no no-doc loans. Stated income loans may need 25% down or more. Right now I'm cashing out an investment property, stated income loan at 75% loan-to-value. That is a fairly risky loan, but banks are still doing it. Also, lower credit loans if available to a buyer, are priced with more "rick-based-pricing" - which means they pay more in rate and fees. Lastly, rates are in low 5's right now. If you are on the fence contact a highly qualified lender and see what is best for you. Good luck.
Web Reference: http://www.stevekappre.com
0 votes Thank Flag Link Mon Dec 8, 2008
Yes, mortgage money is available to qualified people.Rates are quite good right now.

Offering owner financing of any kind totally depends on your financial situation. You need to evaluate your comfort level and your cash flow before making that type of decision.

Good Luck.

Sharon Kozinn
Web Reference: http://sharonkozinn.com
0 votes Thank Flag Link Sun Dec 7, 2008
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