Helping a Buyer with FinancingA fully owned property gives you the option of using owner financing to help a buyer you trust, but can’t obtain a standard loan.

Kenner Home Buyers – New OrleansBuyers today are facing a much different loan scenario than they would have a decade or two ago. Back then, you needed a job and a fairly decent credit score to get a home loan. As time went on, there were even less criteria for obtaining a loan and it became easier and easier until there were loans that didn’t even require qualification.

That’s part of what has caused the current real estate market to become troublesome and many to lose their homes. When the loans were too easy, there were more given out, of course, but those who didn’t qualify were soon overwhelmed with their payments and have joined the legions of foreclosed homeowners. The banks have had to take a closer look at their loan qualification practices to counter act the bad loans they gave out like candy at Halloween. The trouble is, they have made a swing almost completely to the other side of the coin. It is now almost impossible for anyone less than ideally qualified to get a home loan.

Helping buyers with financing is possible, especially if you don’t have a large mortgage to pay yourself.

There is something you might be able to do to help if you want to sell your house. Owning your house outright is a no brainer. Check out your buyer’s credit, employment and income situations, and you can even check background and their history with landlords and former residences. If you are satisfied that you have a good candidate, you might want to offer owner financing. This would allow them to buy your place and pay you what they would pay for a mortgage. That’s cash flow monthly for you. Remember to keep your homeowner’s insurance up and keep the taxes paid if that’s in the agreement. A land contract might be more loosely written, requiring that the buyers pay the taxes and keep the house insured for the agreed to term. You’ll turn over the deed to the house when they have paid it off.

If the house is more costly and you’ll need the lump sum soon, consider a lease option. Rent to own would be another possibility. The buyers would rent from you while adding an extra amount each month to the rent, which would go toward their down payment. Give them a year or two to gather their own loan by fixing up their credit, collecting the down payment money, and get additional work or better paying jobs that would help them qualify for a bank loan with which to buy your property outright.

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