Real Estate Search Direct

The question on many prospective home buyers minds today is “How can I afford to buy a house?”  Even though prices have dropped in most areas of the US, it can still be a challenge affording a home.  Regardless of efforts by the Bush administration, Secretary Paulson and Ben Bernanke to spur the lending industry,  lenders are still being very strict with their underwriting policies. This makes it very difficult to get a loan, and unless you are wealthy it isn’t likely that you have enough in savings to buy a home for cash.  Lenders are still willing to loan money if you have enough of a downpayment, though.

Yet there are many less conventional options available to savvy home buyers.  Look for deals that say OWC (Owner will Carry) and you may find a property that the seller is willing to finance all or part of the purchase price for you.   This can help when you don’t have enough downpayment to get a loan.

Even if the seller is not advertising seller financing, it may be possible if you make the offer.  Many sellers never thought of the possibility and they may be interested in receiving payments with interest over time rather than a lump sum today.  If the seller plans to put some of the sale proceeds in a CD, you can offer to pay more interest than they could earn on a CD and it will earn them a nice return on investment.  They also won’t have to pay tax on the lump sum which could put them in a higher tax bracket.

Seller financing can help many people who are having a hard time getting a loan qualify in today’s tough credit market.