Posted by Stacy (AZ) on February 06, 2001 at 11:57:34:
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Owner financing - Posted by Sean
Posted by Sean on February 05, 2001 at 13:45:28:
I’ve found a 100+ year old Victorian that’s FSBO. He wants 129,000. It’s currently a 3 family that I’d like to convert to it’s original condition yet keep the 3rd floor for income. Additional income will eventually come from an effeciency appt. I’d put in the carriage house.
Problem, no $, no credit.
He’ll entertain a 15k note for 24 months
I can get an additional 15k from an investor to cover downpayment and closing. Problem is the down for non owner occupied is 30% (my investor would be on the mortgage), I’d lease from him for 12-18 months and finance when my credit is re-established. Has anyone heard of a bank/institution allowing a mortgage with a co-signer (A+credit). Doing so, I’d only need 5% down at about 7% (or less). Any ideas on how I can make this work. My $600 payment, plus the current income from the 2 other app’ts would cover ALL costs. Between my wife and me, our income is about $75,000.
Re: Owner financing - Posted by dewCO
Posted by dewCO on February 05, 2001 at 18:42:21:
Try this on the financing part of this forum. FHA would do the loan, but you need to owner occupy, unless you can get an FHA 203K rehab loan in your area, and the property needs to qualify too. How 'bout the seller takes the investors $15,000 and carries the rest for a year or so.
Make sure that converting this back will add value vs. what it costs to do the rehab, otherwise you aren’t going to be moving forward very fast on value for your time and money.
also you don’t say what it’s worth right now. Usually if you aren’t getting great terms (you aren’t) then you need a great price, like 60-70% of market value. Most here find that if the seller isn’t MOTIVATED it makes it hard to do a good deal, especially without credit or $$$.