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Answers (6)
- Spirit Messingham, "TucsonSpirit"
- Contributions:663
Opinion based question, more I would think the better for you but there is also what the buyer is able to do to keep into consideration as well.
- MarthaGuzman
- Contributions:2
I own the house free and clear. The agent seems to think the condition of the house would cause problems with a conventional lender but the only structural defect is a sagging front porch roof. I have had only offers of $55K from "flippers". So far I don't have an offer at anywhere near the asking price.. The agent has suggested 7% interest. I want to sell "as Is" because I have no money to make major remodeling and updates.
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
Consider basing the down payment partly on the credit worthiness of the prospective buyer and his/her debt ratio. The better the prospect's credit and the lower his/her debt ratio, the smaller the down payment.
The other component for establishing a down payment is your comfort level. How much risk are you willing to accept.
Most lenders today require 10% for borrowers with exceptional credit and a low debt ratio, if the property being purchased will be the buyer's primary residence. 20% is not unheard of and 30-35% is typical if the purchase is a second home.
- Robert Schult, "RobertSchult"
- Contributions:6
Hi Martha:
Not knowing all the details I would say that the numbers the selling agent suggested are in the right ball park for seller financing. However, you do need to analyze your risk. Bad to just OK credit requires more down. What is the interest rate you are seeking?
Not knowing all the details I would say that the numbers the selling agent suggested are in the right ball park for seller financing. However, you do need to analyze your risk. Bad to just OK credit requires more down. What is the interest rate you are seeking?
- Ann Howell & Kathi Loesche, "The Prosper Team"
- Contributions:161
I would recommend that you talk to a local Escrow Agency about structuring the loan - they service these loans and can give you some guidance. A rule of thumb is 20 - 25%
- Bill Smith, "billsmith."
- Contributions:37
I would begin by asking you:
Do you own the property free and clear of encumberances?
Does the buyer have really good credit?
Are you asking over market value, since you are willing to carrry?
How much damage can the Buyer do before you could evict, if the situation changed?
Are you using an escrow/title company to handle the written agreement?
There is money to be made, but use caution and protect your investment.
Do you own the property free and clear of encumberances?
Does the buyer have really good credit?
Are you asking over market value, since you are willing to carrry?
How much damage can the Buyer do before you could evict, if the situation changed?
Are you using an escrow/title company to handle the written agreement?
There is money to be made, but use caution and protect your investment.
How much of a down payment shoul I ask for if I acarry the loan if the purchase price is $85K?
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