I’m a qualified buyer, but I want lower payments. What do I do?

By
Real Estate Agent with Keller Williams Realty

With interest rates creeping up every month and down payments near 3%, I am finding more and more buyers that like the houses they are finding, but don't like the payments they are being quoted from the lenders.

Thirty year fixed rate loans are nearing 6.5%, and PMI (Private Mortgage Insurance) is also going up. You, the average home buyer, may be coming out of pocket, an extra $200 every month despite having an 800 credit score. You also have to figure out where to get another 3% for closing costs!

But, what if I could show you how to by a home with 3%-5% down, with interest rates sometimes as low as 5% APR, and you have no required PMI, saving you up to $200 a month. And if it is a larger home, it could save you even more since a jumbo loan right now is about 7.5%.

How can I do this for my buyer? It is called owner financing and anyone can do it. You just have to have a willing seller, which in today's market really isn't that hard to do. You see, the seller becomes the bank! The seller sells you the house at the price they are asking, less maybe 1% for the title transfer, and that is all the closing costs. The seller, not being a bank and not having the overhead banks do, can offer you a lower interest rate and save you thousands of dollars per year.

Now, I can hear you asking yourself, "What is in it for the seller?" Well, the seller can sell a house that has been having problems selling because of people not being able to get loans. The seller also earns the interest on your money. Have you ever looked at a HUD to see how much the bank is really making on your house? Well, the seller is now making that money, so it really is a win-win for everyone involved.

For more information on buying or selling your home on owner financing, please feel free to contact me and I would love to sit down with you and discuss your situation.



Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Photo courtesy of mompes

Posted by


Todd Clark (broker w/ Ken's Home Team)
Keller Williams Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573

 

 

 

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 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.

 

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Location:
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Comments 3 New Comment

Rainer
57,803
Lori Franks
Brookings, Oregon
Real Estate Consultant

Todd...sounds like a great alternative to conventional financing. And it has been popular in the past when the market as had downturns. But as with every other aspect of real estate transactions there are a lot of variables with owner carry. The biggest issue (I think) the seller has to be able to work with his lender if there is an exsisting mortgage on the property.  If certain items can be worked out I agree that it is an option worth looking into.

August 14, 2008 01:32 PM
Rainer
52,256
Daniel Wexler
ReMax

Qualified Buyer ! that is hard to find these days. Just kidding, hope business is strong and thanks for the info regarding alternative to traditional financing

August 15, 2008 01:00 AM
Ambassador
2,030,419
Todd Clark
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Keller Williams Realty

Lori - Very easy to do, trust me, with times as they are most banks will do it in a heartbeat!

Daniel - If you are having problems with traditional financing, I suggest you check it out, it will change your business.

August 26, 2008 05:42 PM
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Todd Clark

Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
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Helping Families Home is a blog set up to help families find that perfect home for them. I have a family and I understand how hard it can be to find a home that everyone is happy with. Let me help you find that home and help your family home.


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