Question
Does this sound like a doable real estate deal?
I am looking at purchasing a $190,000 home. The owner is willing to do owner financing with 30% down for 15 years at 7% interest rate, none qualifying loan. My question is if I put down almost 30%, would it be possible for me to get conventional financing with poor credit. I've got the cash but poor, poor, poor credit. What would be my chances or could I possibly sell the note to someone to pay of the owner.
1 month ago - 1 answers
Best Answer
Chosen by Asker
If the seller is willing to carry on the terms you said with out your having to qualify for a loan, then go for it. The 30% is only 5% over the normal, the 15 years is a good loan life, and the 7% is almost unheard of from private lending. Good rate. As long as you don't have a balloon payment at the end then I don't even see the reason to re-fi. Carry it to the end. The prepayment penalty clause, it would be a good thing to make sure that there is none.
Source(s)
California Realtor
by sierraguy72
4 weeks ago
Asker's Rating: 
Other Answers
Use the owner to re-establish your credit say 2 years. See if the owner will go for a no prepayment penalty if you pay out the mortgage early. In 2 years when your credit is rebuilt get a better mortgage. If you havepoor credit most finalcial instutes will not finance you. You can talk to a mortgage broker prior to making a deal with the owner and find out what you need to re-establish your credit and tell him your plan to see if you can get a mortage in 2 years.
by Ken M- 1 month ago