People ask me all the time, "If I have bad credit, can I still buy a home?" The short answer to this question is yes, you can. However there is a longer set of questions that need to be asked. One of the obvious is questions is, "why is your credit bad?" I never judge a person based on their credit score, lets face it, life happens. However, if there is not a good story behind it, and they just don't pay there bills on time, or at all, they are not a candidate for Owner Financing. We would not want to put them or the seller into a potential bad situation.
Another question I ask, is how far are they away from being able to obtain a bank loan? This is important for two reasons. One, about 2% of the market is available with owner financing. Second, if they can obtain a bank loan, they will pay a much lower interest rate, saving them sometimes hundreds of dollars a month.
I have a client I just helped in this situation. She was only 15 points away from obtaining a bank loan. However she wanted to move in to a home right away. We found 3 properties in 3 months that fit the area she wanted. During this time, I had her work on the items she needed to fix for her credit report. Finally her score was high enough. Now 30 homes came up that fit her requirements. She now has the home, with the pool, in the area she wanted. And to top it off, her payment is $300 a month less than she was going to pay.
Owner financing is a great way for someone to buy a home, but sometimes with a little patience, more choices can be made available.
San Antonio TX Real Estate Sales and Solutions – Johnny Morrow REALTOR The HomesInSanAntonioOnline.com Team is your dedicated real estate professional in the San Antonio TX area including Timberwood Park, Stone Oak, Cibolo / Schertz / Universal City, Alamo Ranch, Boerne, Helotes, Shavano Park, the Medical Center as well as the local Military bases of Randolph AFB, Fort Sam, and Lackland AFB. Protecting your equity is our number one priority. 210-897-2645
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