When you purchase a home that the loan required to finance the purchase is more than $417,100, this is called a jumbo mortgage and is a higher risk to a bank. This means that a home requiring a jumbo mortgage also comes with higher interest rates.
This $417,000 limit is set by Freddie Mac and Fannie Mae and, presently, with a down payment and great credit, the best interest rate you can get is 7.13% with no points according to bankrate.com. What does this mean to you, if you are selling your home?
If you have a home that is valued at over $417,000, it means your pool of buyers is dropping everyday the interest rates climb. And if you own a home valued at over $417,000 and it is a non conforming home, such as a manufactured home on it's own land, then it will almost be impossible to find a buyer that will be able to obtain financing through traditional means.
I can show you a way that you can not only sell your home, in days, for full price, but make more money than you could if you sold your home through traditional means.
Owner financing! If you owned your home outright and it appraises at $500,000 and you were to offer your $500,000 home at 7% interest, you could make an extra $34,000 in the first year alone. You see, you get the interest instead of the bank and you don't have to worry about the buyer being able to obtain a traditional mortgage.
For more information on how to sell your home with owner financing, please feel free to contact me anytime.