Mice to meet you. You have summarized things well, it seems to me.
What you have sounds ok to me, except that the interest rate is a little steep compared to market rates these days. But, you are buying no money down which is worth a little more interest, it seems to me. If you credit is a little shaky, the interest rate is reasonable, I’d say.
I would recommend that you take your paperwork to an attorney and be sure that it is all legal and reasonable. Also, be sure to get a building inspection done before you close. See some of the other posts today about needing inspections even for brand new houses. There are often a lot of little things that need fixing. It is better to get them fixed before you sign the final documents rather than later.
Buying home w/ owner financing - Posted by Eric Pierce
Posted by Eric Pierce on July 28, 2003 at 13:15:55:
I am purchasing my first home w/ owner financing, and I want to ensure that I’m safe. The seller is holding the note, and has contractualized that I will pay him the homeowner’s insurance and taxes in addition to the principal and interest on the note. Aside from the down payment, nothing else is due at the closing. It is a new house currently being constructed. Closing is to occur upon completion (estimated 2 weeks). What do I need to do to ensure that everything is kosher? I have a signed “Contract For Sale and Purchase” approved by the Florida Assoctiation of Realtors and the Florida Bar, that stipulates the mortgage at $109,900 @ 8.5% for 30yrs. Also states buyer assumes responsiblity for tax or insurance increases. Do I need title insurance, and how do I ensure public records display I have a right to the property? What else am I missing.