PLEASE READ ENTIRE DETAILS TO FULLY UNDERSTAND THE PROCESS
(WE CANNOT HOLD A PROPERTY UNTIL EARNEST MONEY IS SENT TO TITLE CO)
Partially renovated home offered with owner financing.
3 bed 2 bath.
$5,000 down payment
$575/ mo (plus taxes and insurance)
9% 360 months
Fixed rate, payment never changes. No prepayment penalty. No payoff penalty, no refinance penalty. Home being sold as-is. It is 80% renovated but still needs finishing up. Property has NEW ROOF, NEW ELECTRICAL,NEW PLUMBING, BATHROOMS UPDATED, Needs kitchen and some touch ups.
(PLEASE READ ALL DETAILS BELOW)
$500 earnest money deposit
$650 closing cost
$500 underwriting fee
Owner Finance Requirements
Income: (2 years employment history required) A suitable applicant is a person or persons who have 2 years of provable work history in the past two years. They can prove this with W-2s, pay stubs, and previous year’s taxes, or 12 months current bank deposits. If they don’t have a 2-year work history, they will not be suitable candidates. The second job can only be used to add income if the candidate has been on that job for 2 years.
Residence: (2 years residence history required) A suitable candidate has 2 years residence history. If their credit score comes in at less than 620, they will be required to provide a “Verification of Rent” (VOR) proving they have paid the most recent 12 month’s rent payments in the month they were due. A candidate who cannot do this will not meet Dodd-Frank requirements.
Citizenship: (must have SSN or ITIN) To pull credit, we need either an SSN or an ITIN. Candidates with neither, will not meet Dodd-Frank requirements.
640 and above will fly through underwriting
585-639 will just require a few more documents and verifications
580 and below will have some hoops to jump through and have more documents
500 and below unless there is a major life event that caused it, will struggle to get approval
Is your rent history verifiable and have you made the last 12 payments on time?
How is your income documented? (W2, Pay Stubs, Taxes, Bank Statements)
Owner Financing Q and A Page
How much is the Earnest Money Deposit to hold the property?
What does the application consist of?
Income, debt to income ratio, background check, credit check, rental history.
Is the earnest money refundable if I don’t get approved?
When will I take possession of the home?
Immediately at closing
Can I offer less than the listed price?
You can give an offer, but most properties sell very quickly for the full asking price due to there being so few owner financing opportunities available to the public.
Is this the same as rent to own?
No, you own the house at closing. There is no obligation to refinance the property into a traditional bank loan at any point.
Is there any pre-payment penalties?
No, you can make extra principal payments, pay off the loan, or refinance at any time without penalties.
Can I have pets? Can I add on to the house? Add a fence? Change the floor/paint?
This will be your home, you can do as you please.
What if I decide I don’t want the house any more?
You can sell the house at any time and pay off the remaining balance. Or,
You can let us know that you no longer want the house and you can turn it back over to us and you can walk away without penalty (if you are paid up and in good standing).
Who pays for repairs and maintenance?
You, the homeowner pays for everything. It will be your home.