Thank you Bruce1 I just called you and left a message. This property will be our primary residence. The seller has shown us the area where we can knock down to open up to the second unit. I just found my FICO score to be 566 and now very depressed I might add. I have made too many inquiries to obtain credit and my most of my credit cards are at the limit or slightly over. Is there still hope for me. The seller is suppose to call me tonight with some “figures” I have only about $4k as a down payment do you think this is a fair amount what is the usual amount. He is asking for $135k for the property. Could you tell me any tips I might ask for to save me some money? I have given him $675 for deposit on the apartemnt/house but do not wish to move in as a tenant only with the knowledge that he will be selling first chance he gets. By signing a lease am I protected from him selling to another individual? Thanks for you help in advance.
Colbey
Here are the details. Property is a newly remodeled (3yrs) duplex 1 side 3 BR other side 2 BR. Tenants on 3 BR side are moving seller advertised to rent but after we met we discussed financing to own. Seller stated the property was just appraised at 160K but due to market being slow he has dropped to 135k. Seller stated that a FHA loan would be difficult if not impossible due to the property being a duplex. We plan to convert to one unit if things work out then hopefully try and finance as residential. Right now we are in the process of working out some figures so that I may finance through him. I have little money to put down and was wondering what is the best loan term etc…and also some things to inquire about before signing the contract.
Even though you have a low credit score, since you state that the seller may be willing to carry some paper, I think that there is an opportunity here. By the way, FHA will do up to 4 units owner occupied, so I don’t know who gave you such information.
Colbey, If you’re not working with a mortgage co. then call me at (909) 944-0199 and I will have Neal Johnson find a loan program for you.
Re: TO ED - SELLER WILLING TO FINANCE NEED HELP - Posted by Bruce Lawson
Posted by Bruce Lawson on June 26, 2001 at 13:04:07:
Hi Colbey,
I hope you do not mind I am not Ed Garcia. A comfortable term for a L/O is twelve months this gives you time to either get your cash together or the time to find a sublet. If you are using the property as an investment you want a clause that will permit you to sublet the property. Also if there are any credit issues that must be tended to twelve months will give you ample time to address them.