Buying homes with no money down has never been easier.
With the number of foreclosures on the market, ordinary sellers are struggling with ways to sell homes in a highly competitive market.
This article is going to dissect 3 tips that can save you money when you buy homes with owner financing.
Tip Number One: You do not need to pay for an appraisal.
Appraisals are generally becoming more expensive.
One of the reasons, lenders are pushing for their own appraisers to do the job, and are getting higher fees for their appraisals.
A sure-fire way to avoid having to pay for an appraisal is to get the seller involved in the financing.
Tip Number Two: You do not need to have a credit check.
Though the credit report is a small charge, it can have big implications.
Suppose you have one or two credit blemishes, you will find it difficult to find conventional lenders who are willing to step out on a limb for you.
This can present many challenges.
Perhaps you recently changed jobs, thus creating another roadblock to traditional bank financing.
All of these issues are normally irrelevant when dealing with sellers who can finance the loan for you.
Tip Number Three: No mortgage broker fees.
Brokerage fees and loan origination costs can be extremely high.
There is no need to pay for them if you are able to structure your loan properly in the first place.
This proper structure would involve having the seller participate in the financing of the loan.
In summary, buying homes with owner financing provides many benefits.
The biggest benefit is the opportunity to buy these homes with no money down.
These can be on properties where the seller owes nothing, or on properties where there is an existing mortgage.