Posted on: 24th Sep, 2009 03:03 pm
im looking to buy a house with the owner financing. im not exactly sure how this works but from what he told me is, the purchase price of the home is 60,000. i will leave a deposit of 5,000 and my monthly rate will be 750. i have the option to do a one year or two year and then i would refinance the home in my own name. is this correct? how would the deed read before i refinance, would the owner still be on it until i refinance? or is the home all mine? my other question is will i still be able to recieve the tax credit for first time home owners?
You need to make sure what ever the terms you buy with, needs to be legally documented.
Probably a attorney would be a good idea
Probably a attorney would be a good idea
If the reason that you are looking for a landcontract is because your credit is a little shakey, then you need to be certain that you get it repaired and/or establish credit even if it has to be a secured credit card( won't be disclosed on your credit report). The reason is that after your negotiated term with the seller, if your still unable to obtain traditional finacing you could be out your; payments, downpayment, any improvements that you have done and of course any equity the property might have gained.
bruce123
bruce123
brue has a very good point
most of thiskind of arrangements are done when someone has issues with thier credit score or income
So ti is really important to work on those itmes while you are goign thorugh this process or all the effort is not goign to be useful
most of thiskind of arrangements are done when someone has issues with thier credit score or income
So ti is really important to work on those itmes while you are goign thorugh this process or all the effort is not goign to be useful
Thanks for your answers and im very aware of fixing my credit in time to be able to purchase the home. thankfully i dont have much to clear up, the problem is old debut reporting as new. its a matter of 2,000. I plan on making a settlement payment the first of the year that way my credit has a year to jump in score. everything else on my credit is perfect for the last 2 years. kinda silly i cant get a loan huh?
my husband and i bought property 31 years ago through owner financing and a lawyer said you must file the contract at the courthouse or it won't be legal.
Owner financing is fine. As long as this is your first home and you close on or before November 30, 2009 you are eligible for the first time buyer tax credit. The tax credit would be 10% of the purchase price which means the tax credit would be $6,000.
If you are buying the house, you are the owner.
Make sure you understand what happens if you can not refinance after one or two years. We know that is your intent, but, two years from now no one knows what mortgages will be available at what credit scores at what value of the property versus size of the mortgage nor what your income or credit scores will be.
If you can not refinance in one or two years, do you lose the house, do the mortgage terms get extended. What happens?
If you are buying the house, you are the owner.
Make sure you understand what happens if you can not refinance after one or two years. We know that is your intent, but, two years from now no one knows what mortgages will be available at what credit scores at what value of the property versus size of the mortgage nor what your income or credit scores will be.
If you can not refinance in one or two years, do you lose the house, do the mortgage terms get extended. What happens?
