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Lubbock Homes for Sale - Owner Finance Tips

By
Real Estate Broker/Owner with TechTown Realty, Licensed in Texas 578384

Buyers - Do you have a credit score that falls somewhere below the 620 - 640 range, yet have good stable employment?  Do you have minimal to modest amount of debt?  Do you have money saved for a good down payment?  If you answered yes to these and want to own a home, you might check into owner financed homes in Lubbock. 

The FIRST CHALLENGE to buyers wanting Owner Financing, is the down payment.  Traditional lenders might require only 3.5 - 5% down payment.  Most sellers who will owner finance will require 10 - 15% down.  You might look at your situation and see if the time it would require you to save enough money, might also give you enough time to bring up your credit score.

The SECOND CHALLENGE to those who want to buy with Owner Financing, is the selection of homes.  Today the Multiple Listing Service shows 1419 homes, townhouses, and garden homes for sale in Lubbock.  There are only 16 of those that indicate the owner will finance them.  Your selection of homes is drastically smaller when you have to go the Owner Finance route.

The THIRD CHALLENGE in buying through Owner Financing, is limited negotiations on the sales price.  Since there are so few homes for sale that can be owner financed and plenty of people who don't qualify for a loan through a traditional lender, the sellers can stick really close to their asking price. 

The FOURTH CHALLENGE to Owner Financed homes in Lubbock can be condition or location. Not always, but some homes for sale with Owner Financing have been on the market for a very long time because they need a roof, major repairs, or are located on a high traffic street. 

Study the pros and cons and assess your situation.  Despite the challenges, Owner Financed homes can work well for some buyers and sellers. 

Sellers - Have you been considering selling your home but see that many are not selling or sitting on the market for months and months?  In most cases I can quickly find you a buyer if you are willing to Owner Finance.  Do some research on the subject and let me know if I can list your house and find a buyer for you.  There are many homes for sale now and many that have sat on the market too long in part because lenders have tightened up their standards.  This needed to happen.  However, requiring a credit score of 640 is eliminating SCORES of buyers who would love to own a home.

If you own your house free and clear or have a large equity-if you haven't been able to sell or haven't tried yet due to the market-if you need to move-if you don't want to lease your home and need some money now, then contact me and let's talk about Owner Financing.

 

Comments (2)

Larry Bergstrom
Crescent Realty, Inc. Spanaway, WA. - Spanaway, WA
CNE, CRS, GRI

Mary, with regards to your post, do you find buyers with adequate down who want to buy "owner contract" usually have shacky credit?

Nov 09, 2010 01:09 PM
Anonymous
Mary B

The two I am currently working with have credit between 600 and 610.  I am just now embarking on this endeavor, hoping it will be a win...win...win.  Time will tell.

Nov 09, 2010 02:04 PM
#2