Posted by Bill K. - FL on June 23, 2000 at 15:44:58:
It’s hard to believe there are still some areas that are a buyer’s market with the way the economy has been booming and attractive interest rates etc. Are you in a rural area perhaps? A buyer’s market is definitely the time to use owner financing. Ideally, you want the first to be no more than 80-85% LTV with a minimum buyer down payment of 10%. Better to get 15-20% down if you can. Since you are offering no bank qualifying terms, try to sell for the full appraised price. Keep your int. rate at 10-11% min. and try for 15 yr term. If there is a payment objection go longer and add a 5-7yr balloon. With timely payments they should be able to refi or sell before the due date. With only a 10% dn payment you could structure the first at 80%-85% LTV and hold a 5-10% second with a similar balloon. I doubt you will have much competition from other sellers offering “owner financing/no bank qualifying”, so headline your ads with that. Good Luck.