I have received many calls from potential buyers asking me this question. The answer is a resounding yes! But you have to make sure you do it the right way. I have come across many people who went forward with a lease option, or some other form of owner financing, only to loose their money and have no recourse. It is a sad situation to be in.
There are options available to people who need owner financing.
People whom are self employed almost always fit into this criteria. They write off everything so they do not have to pay taxes, but then the mortgage company uses their tax returns for income, and their debt to income ratios are out of whack! Two years ago if their FICO scores were good enough they could do a No Income No Asset loan, but now their only options are renting or owner financing.
I have a client now who recently became divorced and through the process his credit took a big ding! Looking at his credit history shows that he always paid his debts on time until this life changing event. This person is a strong candidate for owner financing.
I tell my clients who are considering an alternative to a traditional mortgage to always make sure they obtain information from someone who is representing their best interest. In a lot of cases this could be a Realtor with knowledge on the subject who can point them to an attorney for any legal information. If they decide to go forward with an owner finance option, make sure they obtain title insurance and close either at a title company or an attorneys office. A seller who is trying to "pull One Over On you" will be less likely to go forward in this setting.
I have helped many of my clients with alternative financing and plan on keeping this as part of my services offered.
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