Posted by admin on Jan 13, 2011 in
Finance GreatHomesTexas.com not only provides buyers looking for Owner Financed homes in the Austin area with a great resource to find their perfect home, but a great resource for any buyer looking to purchase real estate in the Austin Texas area. Before starting the search for your dream home, here are a few tips to consider to make it a hassle free experience and ensure you find your perfect home.
First, where to buy the house. Location is always one of the most important factors in the house hunting process because it basically determines what kind of house you will buy and how much you are going to pay for it. For example, in Eanes ISD here in Austin Texas, there are very good schools but the houses are relatively old and more expensive. For the same amount of money, you could either buy a house built in the 1960s or 1970s in a good school district, or get a house built after 2000 in a not–too-bad school district. Eventually, most buyers chose the latter one because they want to live a little more comfortably.
Then, what kind of house to buy. Before starting their search, most buyers already know how many bedrooms, bathrooms they want to have in their new home. Those are the must-haves that most buyers do not want to comprise on. But there were also a lot of things that are nice to have but not really necessary. Separating wants and needs allowed home buyers to prioritize their wish list. Prioritization doesn’t limit to just features of the house, but also includes community amenities, transportation, and commute. Read more...
Tags: Austin, Financed, Homes, Owner, Purchasing, Texas, Tips
Posted by admin on Jan 9, 2011 in
Finance A wrap-around mortgage, more-commonly known as a “wrap”, is a form of Owner Financing for the purchase of real property. The seller extends to the buyer a junior mortgage which wraps around and exists in addition to any superior mortgages already secured by the property. Under a wrap, a seller accepts a secured promissory note from the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase money balance.
The new purchaser makes monthly payments to the seller, who is then responsible for making the payments to the underlying mortgagee(s). Should the new purchaser default on those payments, the seller then has the right of foreclosure to recapture the subject property.
Because wraps are a form of Owner Financing, they have the effect of lowering the barriers to ownership of real property; they also can expedite the process of purchasing a home.
An example:
The seller, who has the original mortgage sells his home with the existing first mortgage in place and a second mortgage which he “carries back” from the buyer. The mortgage he takes from the buyer is for the amount of the first mortgage plus a negotiated amount less than or up to the sales price, minus any down payment and closing costs. The monthly payments are made by the buyer to the seller, who then continues to pay the first mortgage with the proceeds. When the buyer either sells or refinances the property, all mortgages are paid off in full, with the seller entitled to the difference in the payoff of the wrap and any underlying loan payoffs. Read more...
Tags: Austin, Financed, Financing, Home, Mortgage, Owner, WrapAround
Posted by admin on Jan 9, 2011 in
Finance You can buy a home with no credit check and actually own it! On an owner financed home purchase you get the deed at closing similar to if a bank had loaned you the money. Below are some details of the various programs available to people with less than perfect credit.
Rent to own – is just like it implies you do not own the property until you have made the very last payment so if you did a rent to own for 30 years it means it would not be yours until 360 payments (It will not be in your name until the 360th payment is made!!) have been made and guess what if you miss or are late on even one payment in most cases it reverts to renting with no chance of it being yours even if the remaining payments were made on time. You are a RENTER until the last payment is made!!
Lease option – Similar to a rent to own but here you are basically signing an agreement to buy the property at some future date. In the meantime you are paying a hefty “deposit” which is usually not refundable should you decide not to buy. This is a way for the landlord to get down payment benefits of a purchase on what is actually closer to a rental. If you do not exercise your lease option to buy you could lose both your deposit (lease option fee) as well as any payment credits. Read more...
Tags: Check, Credit, Financing, Home, Owner
Posted by admin on Jan 8, 2011 in
Finance Qualifying for a home loan is the most common impediment to buying a house, which is why we offer the easy and fast Owner Financed home buying solution. Although, there comes a time when you will need to qualify through a bank to refinance your Owner Financed home. The Owner Finance specialists at Forte Properties help you with rebuilding your credit and will also give you the tools needed to do so. It is never too early to start! Here are some things you can do to prepare and give yourself the best chance of being able to refinance when the time comes.
1. Check your credit history. There are many sites you can go to and obtain your credit reports from all 3 credit bureaus such as FreeCreditReport.com. Look it over and see if there are any errors or out-of-date negative entries. If so, file a dispute form and get them removed before applying for a home loan. Are there any charge-offs or past-due accounts? If so, contact the lenders and try to make a deal to have those entries brought current or removed entirely. Again, do this before applying for a home loan.
2. Do you have several credit card accounts that are open? Close all but one account and wait for the closures to be reflected on your credit history. Only then should you apply for your home loan! Too much outstanding credit (or the potential to create it i.e. open accounts with balances) is a huge red flag for mortgage lenders.Try to save up a down-payment of at least 20% of the amount you intend to borrow. The more you have available for the down-payment, the easier it will be to qualify for a home loan and get the most favorable terms. Read more...
Tags: Austin, Financed, Home, Owner, Prepare, ReFinance, Texas
Posted by admin on Jan 8, 2011 in
Finance In today’s tough market, even well-priced homes are staying listed for months. Desperate sellers continue to lower prices, but with no success. Even with affordability at an all-time high, buyers are hesitant due to the instability of the overall economy. For those who are willing to buy, getting approved for a loan can be another roadblock to overcome. It’s times like these where inventive and highly-risky options are ready to be considered.
Jonathan Osman explains why owner financing can be a win-win situation:
“Essentially, in owner financing, you, the seller, are acting as the bank for the buyer. They qualify based on your criteria, pay you a mortgage every month, and they own the house. Much like the bank, if they are late on a mortgage payment, you can foreclose based on the terms of the mortgage and when they sell it, they will pay you the balance. While it is risky and isn’t for everyone, it can be extremely profitable and an excellent source of income through the interest paid on the loan. Most people never consider why a bank would ever consider lending money to someone who couldn’t pay it back. However, all one needs to do is to pull up an amortization chart to realize the profit involved in mortgages. For an example, take a 0,000 mortgage at a 5.5 percent interest rate. In the first year, the buyer has paid the seller ,932.72 in interest and only 94.20 in principal.”
Prospective buyers are not qualifying for loans for a variety of reasons, most of which are the result of the recent tightening of the lending guidelines.
If a seller needs to sell a property and is not risk averse, owner financing may be a way for the both properties to come out ahead. Read more...
Tags: Austin, Buyers, Financing, Homes, Owner, Sellers
