I’m a qualified buyer, but I want lower payments. What do I do?

Real Estate Broker/Owner with Respect Realty LLC 200311024

With interest rates creeping up every month and down payments near 3%, I am finding more and more buyers that like the houses they are finding, but don't like the payments they are being quoted from the lenders.

Thirty year fixed rate loans are nearing 6.5%, and PMI (Private Mortgage Insurance) is also going up. You, the average home buyer, may be coming out of pocket, an extra $200 every month despite having an 800 credit score. You also have to figure out where to get another 3% for closing costs!

But, what if I could show you how to by a home with 3%-5% down, with interest rates sometimes as low as 5% APR, and you have no required PMI, saving you up to $200 a month. And if it is a larger home, it could save you even more since a jumbo loan right now is about 7.5%.

How can I do this for my buyer? It is called owner financing and anyone can do it. You just have to have a willing seller, which in today's market really isn't that hard to do. You see, the seller becomes the bank! The seller sells you the house at the price they are asking, less maybe 1% for the title transfer, and that is all the closing costs. The seller, not being a bank and not having the overhead banks do, can offer you a lower interest rate and save you thousands of dollars per year.

Now, I can hear you asking yourself, "What is in it for the seller?" Well, the seller can sell a house that has been having problems selling because of people not being able to get loans. The seller also earns the interest on your money. Have you ever looked at a HUD to see how much the bank is really making on your house? Well, the seller is now making that money, so it really is a win-win for everyone involved.

For more information on buying or selling your home on owner financing, please feel free to contact me and I would love to sit down with you and discuss your situation.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

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Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

Todd...sounds like a great alternative to conventional financing. And it has been popular in the past when the market as had downturns. But as with every other aspect of real estate transactions there are a lot of variables with owner carry. The biggest issue (I think) the seller has to be able to work with his lender if there is an exsisting mortgage on the property.  If certain items can be worked out I agree that it is an option worth looking into.

Aug 14, 2008 06:32 AM #1
Daniel Wexler
ReMax - Fountain Hills, AZ

Qualified Buyer ! that is hard to find these days. Just kidding, hope business is strong and thanks for the info regarding alternative to traditional financing

Aug 14, 2008 06:00 PM #2
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Lori - Very easy to do, trust me, with times as they are most banks will do it in a heartbeat!

Daniel - If you are having problems with traditional financing, I suggest you check it out, it will change your business.

Aug 26, 2008 10:42 AM #3
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