Posted on: 24th Jun, 2009 07:48 pm
I have the opportunity to purchase the home that I am currently renting. The owner of the property has no mortgage. The owner is willing to finance the property. Would a bank need to get involved at all? How do you suggest that I go about purchasing the house without a formal bank mortgage?
sallypepper
Should I tell you seriously this will turn out be a very good deal if you can make proper documents and agreements with your owner.
This will be good as you will have to pay very low interest.
but make sure you tell the owner that the deal will be having all the clauses as that of banks and make sure you include all those clauses in the deal.
keep in touch..
Should I tell you seriously this will turn out be a very good deal if you can make proper documents and agreements with your owner.
This will be good as you will have to pay very low interest.
but make sure you tell the owner that the deal will be having all the clauses as that of banks and make sure you include all those clauses in the deal.
keep in touch..
hi sally,
you will need a regular mortgage from a bank or a mortgage company at some point in time in order to purchase the home. if you do not qualify for a loan immediately, you can go for a seller carry back mortgage option. here, the seller of the house can carry a mortgage on the property on your behalf and you can pay down each month until you are able to refinance in your name. the seller, however, can charge a higher rate of interest for carrying the loan on your behalf.
you can also go for a rent-to-own agreement with the seller, under which you will be offered to purchase the house at a given price within a certain period of time. till the time you get a mortgage to buy the property, you can rent it. a part of the rent will be applied towards the final purchase price (similar to the monthly payment towards principal on a loan). at the end of the term, you can get a mortgage and buy the home at the given price.
you will need a regular mortgage from a bank or a mortgage company at some point in time in order to purchase the home. if you do not qualify for a loan immediately, you can go for a seller carry back mortgage option. here, the seller of the house can carry a mortgage on the property on your behalf and you can pay down each month until you are able to refinance in your name. the seller, however, can charge a higher rate of interest for carrying the loan on your behalf.
you can also go for a rent-to-own agreement with the seller, under which you will be offered to purchase the house at a given price within a certain period of time. till the time you get a mortgage to buy the property, you can rent it. a part of the rent will be applied towards the final purchase price (similar to the monthly payment towards principal on a loan). at the end of the term, you can get a mortgage and buy the home at the given price.
jenkin, your first statement is not true at all...if the owner finances the sale, the owner finances the sale. there's no need for a bank or mortgage company in such a transaction.
sally is indicating, it appears, that the owner will self-finance the debt; therefore no bank involvement is necessary. if the interest rate is a fair one, then there's no reason for her to not go forward.
sally is indicating, it appears, that the owner will self-finance the debt; therefore no bank involvement is necessary. if the interest rate is a fair one, then there's no reason for her to not go forward.
