Finance question

[Twins027]

Good afternoon! I have a question with a little background. Hopefully someone can point me in the right direction. My family desperately needs our own home and fairly soon. I have been working on my credit, but due to my husband having two back surgeries this summer..it has taken a bit of a dive downward (we don't have insurance). Long story short...I was extremely close to being at a 620 or above and am now back down to just under 600. The home we would love is 59k used. I also am completely open to finding a cheaper one if that is what financing finds I need to do. Does anyone have any suggestions on financing? Or what I can do to improve my situation? Anything would help. I am just kind of at a stand still I believe. Thank you so much!
Kristi

[David Oxhandler]

Hello, and thanks for posting to our forum.

You are in the same situation as the majority of hard working people since the bankers crashed the economy. It is very difficult to find decent financing if your score is below 600 but not impossible. There are a few lenders and brokers that might be able to help. Submit the easy MH LoanFinder form to find out what might be available to you.

You might also want to consider a home that is being offered with owner financing. It is not just home buyers that are being frustrated by the tight credit market. People that would like to sell their homes are sitting an extraordinarily long time between offering their home for sale and selling it. Many smart sellers are taking the money for the sale of their home over a number of years and earning hundreds of times more interest then they could in any other safe investment.

Interest in a saving account is under one percent and great CDs are below 3%. while owner financing is returning from 5% to the local state maximum permitted by law. The seller is maximizing his return. The buyer's advantage is good also. While mortgage rates are being promoted in the 3% range, traditional lenders programs for lower score borrowers are getting much, much higher interest rates.

Despite higher interest rate, there are many benefits to a buyer:

1. Easy Qualification. Owner financing does not require traditional bank income and credit approval. The buyer may have a low credit score because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines.

2. Credit Rating. Owner financing may give the buyer a chance to improve his credit rating by owning a home and making payments timely.

3. No Loan Costs. The biggest cost benefit for a home buyer is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and t other fees charged by conventional lenders amount to thousands of dollars at closing. The buyer is free from these with owner financing.

4. Fast Closing. The buyer can close and move into a property within days, since there is no third party lender holding up the transaction.

Check your local newspaper and web classifieds. Look sellers offering Owner financing, Seller financing, Lease-Option, or Rent to own. Which are all legal variations for a home seller taking installment payments.

[Twins027]

Thank you very much. I did the Loan Finder form a couple days ago and will wait to see if I get a response. I have checked around for owner financing but have been unable to find anything as of yet. I am thinking the only problem with that would be that they probably would not allow us to put it on our property. I am not concerned with the interest rate. I know I probably should be, but we are aware that ours will be higher and would just appreciate the chance at it. Thanks!!

[David Oxhandler]

Post a "looking for home" ad on http://www.craigslist.com or similar local sites. you may be surprised at the results. There are loads of frustrated sellers coast to coast.

[debbieyoungart]

I have a 2000 square foot, 5 bedroom 1999 manufactured home in a family park in Washington State that I want to sell on a contract. This is allowable in our park, I just don't know how to set up the terms and appropriate interest rates for the sale. We own it out right and have no lien against it and are willing to carry the contract with a down payment and fair interest rate.

[David Oxhandler]

There are several sites where you can download the forms you need. Some are free like http://www.rocketlawyer.com/document/re ... r=srch:1:1 others charge a small fee to customize your document.

A fair interest rate is one that is negotiated and agreed upon by both buyer and seller. In many parts of the country owners are asking the max permitted under the law (18% in most states) If you start at half that amount - 9% - it is a very reasonable starting point for negotiations between you and your potential buyer.

Don't set your numbers in concrete... much more important is to qualify your potential buyers. Be sure they have enough income after existing obligations and a credit history that tells you they can comfortably make the agreed payments.

[Celtlund]

If you own the property you want to put the home on, you can use the equity you have in the property as part or all of the "down payment." Just make your lender know you have equity and you want to use it.

[debbieyoungart]

Thank you. I'm a little scared to do the paperwork myself and wonder if it might be better to have an attorney write it up. Also wondering if using an agent to sell the house might give me the additional help I need to line up the paperwork and escrow as I want an escrow company to also collect the taxes, insurance and space rent etc along with the principle and interest.

[Fadl]

how can i apply house loan ..