Buyer-Criteria, Financing Guidelines For SelectingThe Right Home Buyer

These Owner Financing Buyer-Criteria Will Determine Who Is An Acceptable Home Buyer and Who Is Not!

Insider Tip
Each of these selection criteria is extremely important! The priority of each will vary depending on the specific value investors may place on them. Since the following are their financing criteria, they should also be yours.The property being evaluated is a Single Family Residence.

Home Buyer-Criteria

Down payment/Equity

Credit Report/Payment History

Ability To Pay/Debt To Income

Job Stability

Character

Interest Rate

Documentation

In the midst of a housing market that shamelessly offers low-down and nothing down home owner opportunities, we have to ask, "Why are there so many foreclosures?" It's really pretty simple. Many people have bought more house than they can afford, and there is very little financial margin for error. Following are ingredients for much better results.

Let's take a look at our first buyer-criteria, the down payment or the amount of equity in the deal.

Down payment/Equity

The down payment represents the degree of commitment your buyer has towards purchasing your house. A good down payment will be 20% or more of the purchase price. Today it's typical to see down payment amounts in the 5% to 10% range.

According to the Federal Home Administration, (FHA), "a low down payment is the best predictor of default." (They should know better than anyone!)

Contrary to what the general housing market promotes, when you seller-finance your property, you should always collect a substantial down payment! Owner financing is a tremendous benefit for the home buyer. Seller or owner financing gets and deserves premium consideration from all segments of the home buying market.

In most cases you do not have the financial resources to leverage your investment the way a bank or mortgagecompany does.

Those companies have portfolios of many houses to minimize their risk. Depending on the number of houses you have financed, your house is probably your portfolio. That means you assume more risk, so you deserve more reward....like a larger down payment or some type of compensation.

Conventional lenders will require Private Mortgage Insurance (PMI) for buyers with less than 20% equity in the property. By providing "seller-financing", remember you are the "bank". That means you get to decide what influence the amount of the down payment will have in conjunction with the remaining buyer-criteria.

Insider Tip
Here's something major about the down payment. Your role as the "bank" gives you extraordinary control over the sale details of your home! If you choose to do so, you can accept cash, property, services, "work for equity", various credits, or any number of creative solutions that are mutually beneficial to you and your buyer as part of the downpayment!

NO BANKS NEEDED WHEN YOU SELL OR BUY!!

There is no need to wait to fill out your funding request. Just complete your own loan application right now. Be sure to save a copy for yourself.

With home buyer-criteria, after the downpayment comes the Credit Report!