Jump to content

Just how "creative" can financing be?


Maury1965
 Share

Recommended Posts

Here's the deal...

My wife and I have sold our home. We had been dealing with a broker on the phone for the past few months. We have poor credit and will be paying off a ch.13 with the equity from our sell. The broker pulled our credit reports on August 16th and my wife's scores were 643 Experian, 620 Transunion, and she didn't have a Equifax score. My scores were considerably lower with a 624, 571, and 537. Based on my wife's scores they were going to be able to offer us .95% financing at a somewhat reasonable rate. However, now Transunion doesn't give my wife a credit score at all. And since they cannot use her unless she has at least two scores, they're going to have to use my very low scores to qualify us for a .90% loan at approx. a .09% rate. I can't tell you how bad that stinks! Especially since we cannot come up with the additional .05%. Is there any way that we can get my wife's credit scores revised? It would certainly help us out.

Here's where it gets interesting...

The home we're wanting to buy is for sale by owner. The home appraised at $155K a couple of months ago, when a buyer was trying to purchase it for $139.9K. The seller has agreed to sell us the home for $129K. The seller's son is in the mortgage business. They are saying that there are "creative financing" methods which could be used to get us into the house. It would involve showing that we paid more for the house than we actually did. This is where it gets really confusing to me. Obviously, the seller is going to have to put up some of his own cash, only to get it back at closing. Right? He told me that the total amount financed would probably equal me financing the down payment with closing costs. We've grown to like and trust this family selling us the house. Having said that, if I end up financing more than the seller is asking I don't think I should have to put any money down, or they will end up getting more than the $129K asking price. Geez, I hope someone can make sense of all of that.

Does all of this sound on the up-and-up? Or does it sound like someone is out to get me?

Thanks,

Maury

Link to comment
Share on other sites

We just sold my grandfather's house. We asked $207K for the home. We accepted an offer of $212 with the difference ($5K) applied towards buyers closing costs. Basically, the buyer was able to get into the home for little money since we agreed to the terms. We got our original asking price of $207K and she got to move in with us paying $5K towards her costs. It is a great way to get into a house if someone is willing to work with you and the house appraises high enough to cover the difference in price. I would trust the transaction. Besides, depending on where you live, the escrow agent or lawyer will make sure everything is on the up and up. I would go for it. Just watch the wording on the sales contract.

Link to comment
Share on other sites

We just sold my grandfather's house. We asked $207K for the home. We accepted an offer of $212 with the difference ($5K) applied towards buyers closing costs. Basically, the buyer was able to get into the home for little money since we agreed to the terms. We got our original asking price of $207K and she got to move in with us paying $5K towards her costs. It is a great way to get into a house if someone is willing to work with you and the house appraises high enough to cover the difference in price. I would trust the transaction. Besides, depending on where you live, the escrow agent or lawyer will make sure everything is on the up and up. I would go for it. Just watch the wording on the sales contract.

Link to comment
Share on other sites

We just sold my grandfather's house. We asked $207K for the home. We accepted an offer of $212 with the difference ($5K) applied towards buyers closing costs. Basically, the buyer was able to get into the home for little money since we agreed to the terms. We got our original asking price of $207K and she got to move in with us paying $5K towards her costs. It is a great way to get into a house if someone is willing to work with you and the house appraises high enough to cover the difference in price. I would trust the transaction. Besides, depending on where you live, the escrow agent or lawyer will make sure everything is on the up and up. I would go for it. Just watch the wording on the sales contract.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.