Posted by Jessica on May 12, 1999 at 22:27:02:
Hi Drew,
If you are not planning to have this house as an investment, then it’s ok. If you do, you want to make sure that you are buying a house at least 80% below its market value.
Best way to do it, is to offer the owner to carry back the 5%, and get the 95% bank financing, and ask the owner to pay for your closing cost. Usually, since most of the country is the seller’s market, they would not be willing to take back paper. Especially if you knew that they have turned down several good offers in the past. They may not be as motivated enough to sell. Anyways, try to ask if he will take paper? If he carried back 5%, bank 95%, and he’ll pay for the closing cost. Then you can get into this house with no money out of your pocket.
Hope this helps:)
Jessica.
A place to call home??? - Posted by drew
Posted by drew on May 12, 1999 at 07:40:18:
I’m currently looking for a house to live in and have found the preferred (i.e. wife approved) neighborhood. There is a very nice FSBO listed at $216k (4 bed, 2.5 bath, 1/3 acre). Comps have sold for $210 to $240 in the past year.
Sellers are having a house built about 30 miles away and will be moving out at the end of June. The house has been on the market since mid-Feb and in the MLS since mid-Apr. Guess they gave a realtor some $$ to put it in the MLS and an agent will get 3% if they bring in a buyer. They have had cash offers of $195k and $200k in the past two months. They purchased the home for $192.5k about 6 years ago.
Although I am not looking at this as an investment property, I would still like to get in for as little down as possible. We have very good credit and are “pre-qualified” for a 95% loan well above this price range.
Any suggestions are deeply appreciated. THANK YOU!
-drew