Seller Financing?$mall Down Payment - Posted by Randy
Posted by Randy on July 08, 2003 at 10:32:16:
Selling with NO money down you will draw a bigger clientele, but is it the clientele you want? Depends on your Loan Broker. Typically people with no down payment have good intentions, but if the going gets tough, what do they have to loose? their down payment (can you spell Zero)? If they have good credit but are just cash poor right now that?s a different situation. Also many ?No Down? clients have less than good credit, meaning the lender will not approve them for financing with out a down payment. There may be a seasoning issue as well, requiring you to have held title for 12 mos. prior to the sale.
A good option is to sell on a seller financed note with small down payment (5%), maybe a 2nd to cover the lender?s minimum LTV, and then sell the note. This way you can use grant programs and other incentives for your buyer. I know of sources that will do this kind of flip and fund them in 7-10 day?s. Email me directly if you need more info.