The "norm" for 620 for some people it is easy to obtain or to a lender who look for 700 + this would consider as bad credit. However, I have found FHA lenders who advertise they can go down to 530 in some cases. So who really set up the norm?

In our program, someone who would fit the same guidelines as conventional mortgage will be offered the same terms and very similar rates as the mortgage. But our other programs also benefit those who can not otherwise obtain financing anywhere else.

We don't have one-size-fits-all program. We actually decline some applications sometimes to in order to prevent buyers going into homes they are not likely to be able to realistically afford. I agree with buyer beware of anything they are buying into, but there is no advantage for us to abuse our funding source either.

We are not service providers, we do not get paid by fees or commissions. We are not lenders, we do not offer these financing programs so that the borrowers can go spend anyway they want. A Toyota financing won't qualify the driver for a Mecedez. And if the home buyers can't find what we have to offer, he can wait until he qualifies for conventional mortgage and then buy any properties on the market. The financing is only available in house and through our affiliate companies and lenders. And therefore, we are non-compete with mortgage brokers.

However, my company and myself have not yet personally worked with you on any case. And we don't take away anyone else's business either unless they have no other ways of solution.

I felt in your language that you were being defensive somehow?

Please open up communication.

Thanks,
Celine

Generally speaking ( so I dont get sued!)

Offering homes to buyers who have 560 credit score when the norm is 620??

Give me a freakin break! Sounds like predatory lending!

I stand by my earlier comments

Buyer beware, hell, be afraid!

Daniel,

Thank you for being the first to open up the discussion about seller-financed home prices. I have talked to people who have had the same concerns about over-priced homes and I am glad that you brought it up here.

I have not personally purchased a home from others via bond-for-deed or seller financing, so I can not say that a seller took advantage of me. I purchased my home with conventional mortgage, while it was easier to qualify. However, getting financing is more difficult at this time for most buyers and we want to make it easier for those who really want to own a home.

I can say about our business:

Real estate is not a one-way business. At anytime we are offering a house for sale with certain price and terms, it has to be workable and comfortable for the buyer too. We advertise and sell in the open market, we welcome buyers who work with agents and entertain their offers with pre-approval letters from conventional lenders. But we also offer seller financing for those who can not get financing anywhere else.

We verify buyers financial ability and offer 30yr fix rate financing with no balloon payments to those who qualify with our program requirements. The terms and conditions are no different than a bank mortgage but we make it easier for people to qualify with lower FICO and down payment.

We prefer to sell the houses and let the buyer have title at closing. So we do not offer bond-for-deed unless we know realistically the buyer can qualify for financing within 1 to 3 yrs, and we work with them closely to repair credit so it is at least 560 FICO before they can get into a 30yr fix rate financing.

My investors are the people / entities who put out hundreds of thousands of dollars up front and they are willing to work with some "at risk" buyers and it will take them years before they can recoup all the money. So they order appraisals and check comparable to see whether the property is worth the price. No One can get any funding if the property is over priced.

All the paperwork are available for review by buyers, agents, family members, attorneys and anyone else who the buyer wish to consult with before closing. We have a very simple and straight forward program. NO STATED INCOME, NO ADJUSTABLE RATE, NO BALLOONS. We go through normal closing too at title companies. So in a way, we really avoid doing the risky things that conventional mortgage use to do...

So my answer is: Before thinking seller financing is over priced or bond-for-deed is risky, move one step forward and carefully study about the properties and financing that we offer here.

It may or may not be the perfect solution for everyone. But what if someone was in a position where they either don't have great credit score or a lot of down payment? And they just need to move out of where ever they are...

The only reason why a seller opt to owner finance is because the house is OVERPRICED!

Why would anyone take years to get their money for a home when they could sell outright on the open market??

Cause the house is overpriced

Bond for deed is usually the mosr risky form of ownership for the buyer

Buyer beware!