Posted by Jessica on May 12, 1999 at 22:27:02:
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:)