Posts Tagged ‘Buyers’
Even Qualified Buyers Can’t Get a Home Loan – Owner Finance!
You and your spouse hold steady jobs and you have both had those jobs for over two years. You don’t have a home to sell to move into a new house, you have perfect credit and a down payment to boot! So nothing should be holding you back on buying your dream home should it? Real estate broker’s hands are tied in today’s market. They are struggling to get even the “textbook” buyer a home loan.
Today’s one-of-a-kind real estate market situation calls for a one-of-a-kind solution. A solution that protects both the buyer and the seller. The seller gets the full asking price for the property. In exchange, the seller retains the mortgage for a period of time. The buyer assumes the payments (mortgage, taxes and insurance) when moving into the property. Further, the buyer assumes maintenance of the property. Both the buyer and the seller become part of a holding company, called the trust. This becomes a business arrangement, which requires the buyer to perform fully and properly. At the conclusion of a specified time, the buyer then obtains a conventional mortgage on the property they have been living in during the specified time, at the price agreed-upon, when the trust was created.
This provides the buyer a “track record” towards limiting for a mortgage. The seller knows they are getting their asking price, and is relieved of the burden of the expenses associated with property, now.
There are other advantages to both the buyer and the seller for utilizing this time-limited trust arrangement. The key point for the buyer and seller is they can move NOW, and apiece party’s interests are protected. While the trust does have finite time duration, it does wage some “breathing room” and certainty to both partners in these difficult times.
To learn more about Owner Financing and the many benefits it has to both buyers and sellers in today’s real estate market, please visit our blog at:
http://www. AustinOwnerFinancedHomes. com
http://www. GreatHomesTexas. com
Owner Financing Homes is a WIN for Buyers and Sellers in Austin
In today’s tough market, even well-priced homes are staying listed for months. Desperate sellers continue to lower prices, but with no success. Even with affordability at an all-time high, buyers are hesitant due to the instability of the overall economy. For those who are willing to buy, getting approved for a loan can be another roadblock to overcome. It’s times like these where inventive and highly-risky options are ready to be considered.
Jonathan Osman explains why owner financing can be a win-win situation:
“Essentially, in owner financing, you, the seller, are acting as the bank for the buyer. They remember based on your criteria, pay you a mortgage each month, and they own the house. Much like the bank, if they are late on a mortgage payment, you can foreclose based on the terms of the mortgage and when they sell it, they will pay you the balance. While it is risky and isn’t for everyone, it can be extremely profitable and an excellent source of income through the interest paid on the loan. Most people never think about why a bank would ever think about lending money to someone who couldn’t pay it back. However, all one needs to do is to pull up an amortization chart to realize the profit involved in mortgages. For an example, take a $200,000 mortgage at a 5. 5 percent interest rate. In the first year, the buyer has paid the seller $10,932. 72 in interest and only $2694. 20 in principal. “
Prospective buyers are not limiting for loans for a variety of reasons, most of which are the result of the current tightening of the lending guidelines.
If a seller needs to sell a property and is not risk averse, owner financing might be a way for the both properties to come out ahead.
http://www. AustinOwnerFinancedHomes. com
http://www. GreatHomesTexas. com