Home arrow Mortgage Forums arrow Loan Talk for First Time Home Buyers arrow

is owner financing safe for the buyer?

Author Message
Icon Mini Profile updoprincess33





Joined: 24 Sep 2009

Posts: 1

1.43 Dollars($)
Post Posted: Thu Sep 24, 2009 3:03 pm    Post subject: is owner financing safe for the buyer?
Like 0
Dislike 0

Im looking to buy a house with the owner financing. Im not exactly sure how this works but from what he told me is, the purchase price of the home is 60,000. I will leave a deposit of 5,000 and my monthly rate will be 750. i have the option to do a one year or two year and then i would refinance the home in my own name. Is this correct? How would the deed read before i refinance, would the owner still be on it until i refinance? or is the home all mine? my other question is will i still be able to recieve the tax credit for first time home owners?
Icon Mini Profile sunnyca2009





Joined: 04 Aug 2009

Posts: 1731

35.55 Dollars($)
Post Posted: Thu Sep 24, 2009 3:47 pm    Post subject:
Like 0
Dislike 0

You need to make sure what ever the terms you buy with, needs to be legally documented.

Probably a attorney would be a good idea
bruce123

Guest







Post Posted: Thu Sep 24, 2009 5:42 pm    Post subject: land contract
Like 0
Dislike 0

If the reason that you are looking for a landcontract is because your credit is a little shakey, then you need to be certain that you get it repaired and/or establish credit even if it has to be a secured credit card( won't be disclosed on your credit report). The reason is that after your negotiated term with the seller, if your still unable to obtain traditional finacing you could be out your; payments, downpayment, any improvements that you have done and of course any equity the property might have gained.

bruce123
Icon Mini Profile sunnyca2009





Joined: 04 Aug 2009

Posts: 1731

35.55 Dollars($)
Post Posted: Fri Sep 25, 2009 5:46 am    Post subject:
Like 0
Dislike 0

brue has a very good point

most of thiskind of arrangements are done when someone has issues with thier credit score or income

So ti is really important to work on those itmes while you are goign thorugh this process or all the effort is not goign to be useful
updoprincess

Guest







Post Posted: Fri Sep 25, 2009 7:18 am    Post subject:
Like 0
Dislike 0

Thanks for your answers and im very aware of fixing my credit in time to be able to purchase the home. thankfully i dont have much to clear up, the problem is old debut reporting as new. its a matter of 2,000. I plan on making a settlement payment the first of the year that way my credit has a year to jump in score. everything else on my credit is perfect for the last 2 years. kinda silly i cant get a loan huh?
donnaD

Guest







Post Posted: Fri Sep 25, 2009 7:36 am    Post subject: owner finance
Like 0
Dislike 0

my husband and i bought property 31 years ago through owner financing and a lawyer said you must file the contract at the courthouse or it won't be legal.
Icon Mini Profile jveenstra
jveenstra
Community Expert
Community Expert

best lender badge

Joined: 10 Nov 2008

Posts: 1256
Location: River Edge, New Jersey
264.15 Dollars($)
Post Posted: Fri Sep 25, 2009 8:29 am    Post subject: Owner Financing
Like 0
Dislike 0

Owner financing is fine. As long as this is your first home and you close on or before November 30, 2009 you are eligible for the first time buyer tax credit. The tax credit would be 10% of the purchase price which means the tax credit would be $6,000.

If you are buying the house, you are the owner.

Make sure you understand what happens if you can not refinance after one or two years. We know that is your intent, but, two years from now no one knows what mortgages will be available at what credit scores at what value of the property versus size of the mortgage nor what your income or credit scores will be.
If you can not refinance in one or two years, do you lose the house, do the mortgage terms get extended. What happens?

_________________
John Veenstra, Sr Mortgage Consultant
Approved Funding Corp
Licensed NJ NY CT PA
201-833-0123x278
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.123 seconds.