Profile picture for AralyyRigobertoArauz

can you help me I want to buy a house but I need owner financing, I have $5000 down

  • October 07 2013 - Tampa
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Answers (9)

I need at least a 580 credit score and then we can take you FHA, VA or USDA depending on if you have any military status or where you are buying. About as close to subprime/private as you will find in the marketplace today

  • December 31 2013
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Profile picture for frankiea954
I agree with all the answers below, I would strongly recommend finding a good mortgage broker, they can tell you what you need to do to fix your credit fast. Sometimes they'll even do it for you (depending on your issues) or they can also put you in touch with a good credit repair team (legit ones can be hard to find). Good luck!
  • October 15 2013
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Simply getting your score to 640 does not necessarily mean you will qualify for an FHA loan. There are many more factors involved in qualification then simply a numeric score.

Your income has to be verifiable for 2 years.  You have to be free of liens or collections.  You cannot have a foreclosure or short sale which has not cured.  Your debt ratio has to be in line with underwriting standards.

If you need a road map to qualification speak with a lender now and have them review your credit.  They will tell you what is negatively impacting your ability to get a loan so you can fix it.
  • October 13 2013
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You didn't say why you needed owner financing. Why? Credit?  If that is the case you need to work on that first.  Get your credit score up to 640 and they try FHA.
  • October 12 2013
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I agree with getting you credit taken care of. If you don't have a bank or Credit Union that offers that type of program, find one that does.

For the purchase side, seller financing is rare in this market, and from what I have found the stated cash that you have is less than what most sellers would want. Other choices include "hard money" or individuals that lend money: you will pay more in interest than on a bank loan, will probably have a "balloon" payment where the balance is paid off either by loan or cash within a 6 year payment. 

Try leasing with a reasonable lease, shop for your housing like you are buying, sign a long lease and later ask the owner if they would consider selling to you at a discount.




  • October 10 2013
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Owners are going to ask for a copy of your credit report.  They are not going to give you possession of their home without knowing your background.  Owners may be willing to finance but they will not risk their property to someone who has a history of not paying their bills.

Owner financing does not necessarily mean the seller holds the note for 30 years.  They may only hold for 2 to 5 and then you have to refinance and pay them off. 

If the home is over priced to start with you will not be able to refinance. You will lose everything you invested.

If your credit has not improved and you cannot refinance - same outcome.

Before you enter into any agreement with a seller you need to hire a real estate attorney to represent you.  That will dig into your $5,000.  There are closing costs with any sale - the seller is going to expect you to pay them.  That reduces your $5,000 some more.

You need to focus on getting your credit straightened out.  Take the $5,000 and start chipping away at any collections or credit cards. Get the balances down to 1/3 of the credit limit.  Keep everything paid on time for at least a year. See where you are in a year credit wise. 
  • October 08 2013
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What is the main reason you are wanting to use owner financing? - joe
  • October 08 2013
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Profile picture for AralyyRigobertoArauz
Any other advice! I have good income but my credit is not good
  • October 07 2013
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Owner financing can have many pitfalls.  The worst being you will pay too much and be stuck with an overpriced home.  Be very cautious.
  • October 07 2013
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