You mentioned paying $1 a day for the home but who pays the mortgage? The reason I ask is because if you are paying the mortgage or anything close by personal check you should have an easy deal. Their are lenders out there that will do a 6 month lease purchase. In a lease purchase the lender will go off of the appraised value of the home which will alow you to buy the home with no money out of pocket. If you choose the right lender you can even get cash out at closing if you want. If you have been only paying $1 day nothing else you have two options that I know of. You can find a lender that is relaxed on land contract purchases. (A lender that is not asking for a 12 month land contract recording and not asking for canceled checks) Or you can buy the home as planned and take cash out right away with a no property seasoning refinance or a 2nd mortgage. I don’t know you total situation but I hope this helps.
BackGround:
This is a really long story so I’ll try to keep to just the relevant points. Last spring I locked up a house for sale that had it’s closing subject to “the short-plat” being approved. THe seller is trying to sudivide the land and build new houses on it. He sold the house to me for $215,000 which was under market value for a house of this size. I know this from running comps at the time. He also offered to let me live in the house for $1/day until the deal was closed. He thought it would only take a couple months. We’ve been in the house for 10 months now and the deal still hasn’t closed. However, I think it’s about to close now.
More to the point:
I know the value of the house has increased a lot, maybe $30,000. A house half this size sold down the street for what I’m paying for this house. THe lender I have lined up now wants 5% down, but will only lend on the sale price, not the assessed value.
My Question:
How can I buy this house for zero money down?
I have 5% in the bank, which I plan on using. However, I’m also getting married in a few months and could use that money on the wedding. I know I could always take out a line of credit on the house after closing, but I’m not sure what’s my best finacial option.
Any suggestions, comments, ideas would be much appreciated.
Lining up this deal has been so fun I can’t wait to do more.
Thanks,
J