Owner finance ?

[txbowhunter08]

I put my house up fsbo today and have had numerous people interested and already showed the house tonight and there coming back tomorrow for a second look. We have 3 more viewings scheduled this weekend, but I've had 3 or 4 people ask if I would owner finance with 20 percent down. Is it worth checking into or just stick to selling out right? Are next house will be our forever home and dont wanna do anything that would hurt my approval for my next house

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[drwilliams]

Guy I work with has 2 houses owner financed. Got 20% down and 10% interest a month. He has had these 2 for about 12 years or so now and making out like a fat rat. He was still able to buy his last house he got a year and half ago for 325k. Not sure if that helps you out or not.

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[pervis]

I would think if someone could put down 20% they should be able to qualify for a regular loan. That's just my thinking. But maybe they're trying to keep it off their credit, maybe debt to income ratio is too high. I'm not an expert. Just a few thoughts.

[Sleepy]

If you can afford it, owner finance it. If they default in a few years, start all over again and you’re money ahead from the first folks.

My grandpa did this with some land in Grapevine. Roger Staubach was one of the ones who defaulted. Defaulted on $100K/yr after the first year on a 3 or 4 year note. This happened twice, the other after about 5 or 6 years. Then he finally sold it to some investors and that land is now where Grapevine Mills Mall stands.

[SmTx]

I would think if someone could put down 20% they should be able to qualify for a regular loan. That's just my thinking. But maybe they're trying to keep it off their credit, maybe debt to income ratio is too high. I'm not an expert. Just a few thoughts.

I know someone trying to purchase a house this way but it's because they don't report all of their income

[Black Ice]

Owner finance ?

I put my house up fsbo today and have had numerous people interested and already showed the house tonight and there coming back tomorrow for a second look. We have 3 more viewings scheduled this weekend, but I've had 3 or 4 people ask if I would owner finance with 20 percent down. Is it worth checking into or just stick to selling out right? Are next house will be our forever home and dont wanna do anything that would hurt my approval for my next house

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It all depends on your financial situation and expecting the worst that they default on their loan.


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[Austin]

Also if you owe on the property there is probably a clause in your deed of trust where the bank could call the note in default if you were to do so. If you have a lien and would not be paying it off check with your lender.

You will also not get to count the payment from the note as income only the interest and only after documentable receipt (tax returns). So you would still have to qualify for both mortgage payments.

[Radar]

If they default on a owner financed house be prepared to do a remodel on it when they move out, more than likely it will be trashed.
Get all your ducks in a row with the contract and make sure you know ALL the tax and liability burden. Property tax and insurance need to be handled by you as well.

[RWB]

Foreclosure and eviction process can be drug out forever. If they go into bankruptcy it can take forever to get them out while the live rent free.

[Mayhem]

Not a chance in hell I would owner finance. I understand people fall on hard time and bad things happen to good people but for the most part there is a reason they cant get legit financing.

[xman59]

if you do not own the property outright,, I would not

if you do not have substantial cash reserves to pay both house notes, I would not..

if you could pay both house notes for a month or two, I would not... you need to be flush because things do go wrong,, and they probably will when you least expect it...

[Burnadell]

If they default on a owner financed house be prepared to do a remodel on it when they move out, more than likely it will be trashed.
Get all your ducks in a row with the contract and make sure you know ALL the tax and liability burden. Property tax and insurance need to be handled by you as well.

Truth.

[gingib]

I know someone trying to purchase a house this way but it's because they don't report all of their income

This is prolly why most do it......

[Drycreek3189]

I owner financed my 217 acres that I sold last year. Fifteen percent down and 6%. Gonna make the "selling price" grow quite a bit in the end. If he defaults, I don't care, I'll sell it again. Just be sure you use an attorney and check the buyer out well.


BTW, I owned that place free and clear, so that should affect your decision

[bowhuntertex]

I sold my place Owner Finance. Everything went smoot, but did everything through an attorney. Get with The Crippler on here. He did all my stuff and was great to work with.