Have you been told by the banks that you don't have a good enough credit score to get a loan? Don't give up so easily, with the right help, from the right Realtor you can get in to a home with out the use of bank financing. The option that I am offering you is call owner financing and it can save you thousands of dollars in interest over traditional financing and put you in to a new home today.
Why would a home owner offer financing to a buyer that wasn't able to get financing through traditional methods? This is a chance for them to make more money. Imagine selling a home for $200,000 with a normal realtor at 6% commission. That home owner would only net $183,000 after paying the Realtor and the closing costs on the property. With 100% owner financing at 7% in 5 years time the home owner would net $56,000 more with a 5 year contract after paying a Realtor 6% and they will have no closing costs.
You shouldn't lose the ability to buy a home, just because of a few mistakes in your past. Sometime a divorce, death or job loss can be the cause of your financial hardship. Why should you be punished for something that wasn't your fault and was completely unavoidable?
There are also other options available to you, if you don't feel comfortable buying a home today. Try a lease option. This gives you the chance to rent a home with part of the rent being applied to a future down payment. It also locks in the price of the home for certain amount of time. This will give a chance to try on a home that you are unsure that you want to own. If you do decide to back out all you are losing is your monthly option money. But, you don't have a home to worry about selling before you go looking for another home.
So what do you need to get started? I suggest you set aside $500-$1000 for inspections and earnest money. An inspection is the biggest and cheapest insurance policy you can ever get in a home purchase.
Now, is owner financing for everyone? NO! 40-50% of my clients that come to me and tell me they can't buy a home through a bank, because of their credit are surprised when I get them in touch with a different bank and their credit is perfectly fine.
Why would your want to own a home vs. renting? Renting means you are paying someone else's mortgage, where owning a home means you are paying down your own mortgage and building equity in your own home through appreciation. Tax time also has many benefits that you may not be aware of. You get to deduct all the mortgage interest off on your federal and state taxes. (Consult your tax advisor for further information on owning a home and your taxes.)
Home ownership can be as close as your phone, give me a call today and I can find most anyone a home.
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