Profile picture for john dohn

is owner financing property a possibility for me?

recently seperated; would like to purchase a home instead of renting; due to credit score related to late payments i am having difficulty finding a lender. Some have suggested I look into owner finances for me...not very familiar with this and how it works or if it even a option for me. i work M-F 9-530 please leave detailed message if you can help me or advise me I am also only interested in the Chester area 23831 trying to keep my daughter in same school district     thanks nonnie bowles 
  • September 12 2011 - Chester
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Answers (6)

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Profile picture for sunnyview
Many owner financed deals go south either due to contract issues, repairs or the buyers ability to qualify. You need a tight contract and a plan before you even consider an owner financed house. Really most people are better off fixing their credit and waiting to buy so they have more house and financing chocies.
  • September 30 2011
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Nonnie,

When you purchase a home you want to be able to keep it. It is very heartbreaking to lose a HOME.
You wrote that your credit problems are due to late payments.

QUESTION: Do you have an EMERGENCY fund for the unexpected in life. Theoretically, it takes 2-3 missed mortgage payments for the lender to foreclose on the house. There are also maintenance expenses. 

I would concentrate on improving your credit score and saving money for the downpayment - the higher the credit score and the bigger the downpayment, the lower the interest rate and the monthly mortgage payment. 

Considering that you are a single Mom with one income, I would suggest that you keep your loan-to-income and your debt-to-income ratios as low as possible. 28/43 ratio is recommended by the federal government. 

Good Luck
  • October 05 2011
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Profile picture for Home Sales For You
Have you looked into FHA loans? They can be a help to people with credit problems. Here is a link to FHA website:

http://www.fha.com/fha_loan_requirements.cfm
  • October 02 2011
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Nonnie

I am in the seller financing business (we are nationwide note buyers) and in the last 3 years our business has taken an 800% increase. There are many homes all over the country where you can purchase a house with owner financing. If you are interested in learning more -[deleted by Zillow moderator.  Please refer to our Good Neighbor Policy] We are even purchasing houses across the country and resell them to people like yourself. Register as a buyer at my site and download the free report. I might be able to help you find a house.
  • September 30 2011
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Profile picture for Ofe Polack
Hi Nonnie, you are probably better off asking the lender to help you mend your credit than doing owner financing.  First of all there very few of those around and secondly the interest rates are usually higher, because whoever prefers owner financing tends to have less than reasonable credit history.
  • September 12 2011
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Hi NonnieBowles,

Owner financing is a wonderful option, if you can find it. Obviously, a very small percentage of homes offered for sale are seller financed, most seller's need the money to buy their next home. This is probably the main factor in why seller financing is not that prevalent. There are also many potential pitfalls with seller financing where fraud may occur. Buyer beware!
Search around, learn as much as you can regarding seller financing, look into "land contract" "contract for deed" "installment contract for deed" all other terms for seller financing.

Here are two sites for info:

http://en.wikipedia.org/wiki/Land_contract
http://homebuying.about.com/od/financingadvice/qt/LandContracts.htm

Good luck! Jim

  • September 12 2011
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