If you are in the market for an Owner Financed Home in Lubbock, TX, you are not alone. The tighter conventional lending requirements are leaving out a lot of potential home buyers.
Facts To Consider about Buying a Owner Financed Home:
Fact 1 - There are few homes to choose from because not many owners are wiling to or can sell their homes and finance it themselves. Most sellers need that equity now!
Fact 2 - Seller Finance home owners are less negotiable on their sales price. It is the law of supply and demand. So many buyers wanting owner financed homes so they can stand firm on their asking price.
Fact 3 - You will need to have a considerably larger down payment. Don't even consider trying to buy a Seller Financed home unless you have enough money to pay 10 - 20% down.
Fact 4 - Your interest rate will likely be higher...maybe between 7 and 10%. Some seller's are still making their monthly payments at 6% so to cover their payments they will ask for higher interest.
Does this sound discouraging? It should be a reality check. There are a few good homes available and you may be willing to pay extra down in order to become a home owner.
The alternate is just to be content renting for a time. And to work on building your credit score so that you can get a traditional home loan.
I work closely with a Lubbock lender who is willing to spend some time counseling and advising people who want to improve their credit score.
If you want to see what is available in Owner Financed Homes in Lubbock, contact me and I'll send you some information. If you'd like a referral to a lender to get advice, just let me know.
Have a great week!
Mary Benton, Realtor
790-1026
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