All Forum Posts by: Account Closed

Hi, 

I'm currently attempting to get lender financing on a property at 3.5%, 5% down, 20 year mortgage @95k. In the event the bank denies me the loan, (if it doesn't come back appraised at 100k, etc.) owner financing has been verbally agreed upon. 

Do these terms below sound fair for my situation? I think they do but am attempting to do my reaserch. I am going to be adding an addendum to the current contract that stipulates owner financing in the event bank/lender financing falls through and am trying to figure out what to put in the contract. 

Below is what was proposed by seller:

-Selling Price: $100,000.
-A period of 10 years amortized, with Interest Rate of 6%

or

Interest Only for 5 years at 5%. This would give you time to get your own financing -- and see what the market is doing.
You would provide insurance coverage, per normal levels.
Any major changes to the property would have to be approved by me.
Any early payoff of either option would include a monetary penalty.

Thanks!

@Chris Mason - thanks for the help. I have already paid for the appraisal so you are correct - it's a wait and see. 

The thing I feel like I'm still in control over is if I wanted to make improvements to the house - the seller would let me, and then if even that didn't pass appraisal/meet lender requirements we could do owner financing so it would still become my property. I'm just not sure up to what improvements do I want to rush to get done in hopes of securing bank financing. HVAC? Paint job? Kitchen cabinets? 

Hi all,

I understand every lender is different however I'm looking for general advice. 

My situation: I am under contract for a single family 3/1 @100k  and am working with a credit union to get a 20 year mortgage with 5% down. House is in an up and coming neighborhood and some sales in the area for around 300-400k (fully renovated).  Condition is fair to poor and I know for lender it needs to meet "livable standards". I do not want to do 203k loan. 

I am working closely with seller, and he is willing to make improvements to the property within reason. He has offered owner financing (we never discussed exact terms) but I thought I would prefer a bank for lower payments. 

My main concern is the heat requirement - there's one gas heater in the house, but there are 3 bedrooms, a bathroom, and a living area without a specified heating element. 

Pros: water, power, gas is on. bathroom functions as well as kitchen. older roof but no leaks. 

Cons: floors are un-even throughout house in some areas, no HVAC only 1 small gas heater connected in a hallway

Will electric heaters pass appraisal if I bought them? Short of renovating the place what can I do to get my loan to closing?

Where can I find good comps? - I'm not working with a realtor and zillow and the tax records seem out of date. I do have access to the MLS.

Thanks!

thank you

@Stan Sugarman. I might have to worst case scenario - I was aware that sizing is an issue but thought maybe someone had a diff option. 

Hi, 

Evicted tenants in all their glory broke every window in the house. Looking to replace rotted frame as well. Any suggestions for handy man type or affordable contractor? Window World and the big name companies have given quotes but will take about a month the do the job due to backlog of work. Thanks! 

What makes you think youre going to find these properties that everyone else hasnt seen? Hows it going so far? Land a contract yet?