You can buy a house and go the conventional route using a real estate agent to find the property and show the property, then going to a conventional lender like a commercial bank then submitting yourself to all the reams of papers to fill out and if they say ‘jump’, you’ll need to say, ‘how high’.
Good news, there is a market where many things can be done on a handshake, rather than having to qualify for commercial lending. There are many down to earth owners that own land, farms and residential houses free and clear. They can finance the property based on a hunch or whatever criteria they decide on. Usually, they are much more lenient than going to a bank. These owners are in the minority, but they can change your life if you have bad credit or just want less hassles while purchasing real estate.
Many FSBO (for sale by owner) properties are offered by salt of the earth people that live below their means and therefore, they can offer to become your private bank. If you can get one that likes you and is very flexible so that they are willing to carry the note for 10, 15 or 30 years, you may have struck gold. Many of them will make a decision if you are credit-worth just by talking to you and their own belief in the gut feeling and intuition.
Other owner financed homes have an owner willing to carry the loan for 1 to 5 years, but they are looking for someone to qualify for conventional financing after a window of time. Just be vigilant and find the right kind of seller for your needs.
Do searches for FSBO properties, for sale by owner homes, owner will carry, lease option, rent to own, lease to own, lease with option to buy and option subject to the existing financing.
If you are a seller and wish to learn how to carry the mortgage for your buyers, your home will likely sell faster, but you should educate yourself on the best ways to do so and consult a real estate lawyer to protect yourself. You can also visit create real estate investing sites and see what’s working for other sellers.
If you are a buyer, you could be rewarded for seeking out the perfect fit for you and buy a home without ever subjecting yourself to a formal credit check and the stacks of forms you have to fill out to get a bank mortgage. You could find a seller that might even give you more of a grace period to make your payments if you hit a rough spot.
Do you still want a conventional loan? Watch the video below to aggressively look for commercial financing.