ATTN Riverside,CA county agents: How's the market for a buyer looking to buy an owner financed house. Anyone w/ this kind of experience?

Asked by Jason, Corona, CA Mon Nov 29, 2010

Recently? Interested in finding an owner financed home for sale in Riverside, CA. 5% down payment available. Looking b/w $255-$290,000 purchase price

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Answers

9
Cameron Novak, Agent, Corona, CA
Tue Mar 1, 2011
You will find little options for owner financing, especially with such a small down payment. Your better option is to focus on your credit and approve for an FHA loan with 3.5% down. Our office helps many people like you each month and our in-house lender is a pro at helping people in your situation.

Cameron Novak
The Homefinding Center
951-212-7479
0 votes
Jason, Home Buyer, Corona, CA
Wed Dec 1, 2010
No its not the only option, just might be better than some of the others. I appreciate all the feedback though. I kinda already knew the answer to my question but its always good to find out about the resources in the area. Thanks everyone!
0 votes
Tony Thomas, , Moreno Valley, CA
Tue Nov 30, 2010
This is a difficult market to find owner financing. As in any market a seller is going to require 20% down with an interest rate of about 7-10%. Is owner financing your only option. Some of the other posts have some good suggestions about qualifying for an FHA loan.
0 votes
Jason, Home Buyer, Corona, CA
Tue Nov 30, 2010
Thanks for the tips on the commute!

I guess the problem w/ asking these questions here is that the asker can't relay their background to the audience in the initially allowed space. I'm simply looking for the status/state of the owner financed market in corona/riverside and understand the stipulations quite well. But someone asking for more than double the going mortgage rate is either not a savvy seller, scared, or just greedy IMO.
Anyone else out there with their eyes on the pulse of this niche market? Agents who regularly or exclusively work with investors should be able to chime in here and have my business when the time comes ; )
0 votes
Emily Knell, Agent, Huntington Beach, CA
Tue Nov 30, 2010
Any owner who has enough equity to consider carrying back financing for you is going to want a min. of 20% down, there's a reason why you can't get traditional financing & because of that risk any owner with enough equity to consider this for you needs to feel secure with this decision. That also means that an owner carry seller will likely charge about 8% interest.

I know of 1 owner carry seller in my neighborhood (not Riverside) & they're asking for 10% interest. That's a little high. You should really speak to a mortgage lender, you may actually be able to qualify for an FHA loan which takes buyers with a credit score as low as 580. Your 5% down can go towards your 3.5% required down payment, plus all or part of your closing costs should you not be able to find a seller or bank willing to pay your closing costs for you.

If you find you might need to rent first while you fix your credit, please do NOT get into a lease option agreement, just rent & if anything, add a clause to your lease agreement that simply states "I reserve first right of refusal should the landlord choose to sell during my lease term".

Commute from Corona to Anaheim, take the 91 freeway & get a FasTrak Pass, go to google & type in "91 express lanes california".

EmilyKnell1@yahoo.com
562-430-3053 cell
0 votes
x, , Hawaii
Mon Nov 29, 2010
Hi Jason,
The possibility is very slim but I can search the MLS for listings where the seller will carry the loan. Most would want a higher down payment to reduce their risk and you will likely need excellent credit. Even then your choices will be very limited at best.
Without knowing your specific situation and goals it's hard to advise you.
If I can be of any assistance please don't hesitate to call me.
Linda Christopher 951-756-4051
0 votes
Jason, Home Buyer, Corona, CA
Mon Nov 29, 2010
Gotcha, I understand this to mean that I'd have to seek out an investor offloading a house who's looking for the benefit of long term cashflow w/out the ownership.

Anyone have a round figure estimate for morning commute time from Corona to Anaheim?
Thanks for supporting the real estate community, guys and gals. You're always very informative!
0 votes
Michael Barr…, Agent, Irvine, CA
Mon Nov 29, 2010
Hi there Jason, As mentioned earlier, not a lot of potential for this in this market.
There are some great deals available in Riverside and the Inland empire in general.
If you would like a list of foreclosure or below market distressed properties drop me a line

Michael Barron
Realtor
First Team Real Estate
0 votes
Cameron Novak, Agent, Corona, CA
Mon Nov 29, 2010
Owner financing is very difficult to find right now. Current homeowners know the market is at/near the bottom of the price decrease which means there's not many standard sales happening right now. Additionally, most home owners are in a negative equity situation right now.

Good luck,

Cameron Novak
Corona Short Sale Agent
Corona, Ca.
0 votes
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