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Easy-Qualify
loan in Austin
0%
down
Michael Bluejay (the
author of the website) is offering loans to
homebuyers in Austin, Texas. Here are
the terms:
- Your credit does not
matter, but your ability to pay
does.
- No down payment is
required, though you can make a down payment if
you like, in order to lower your monthly
payments.
- Your monthly payment
will be about 1.15% of the purchase price,
including closing costs, taxes, insurance. (e.g., on a
$100,000 home, the payments would be about
$100,000 x 0.0115 = $1150/mo.).
- The interest rate is
10%, and I do not require private mortgage
insurance. We'll roll most of the closing costs into the mortgage, so they'll be part of your monthly payment, and you won't have to come up with a bunch of closing cost money at the time of the sale.
- If you already have a high-interest mortgage and would like to refinance at 10% for 30 years, I can do that too.
- These loans are
available for homes in Austin, Texas
only.
If you're able to get a bank loan you should do so, because the interest rate will be lower. My program is intended for people who cannot get a loan from a bank.
Note that you're not married to the higher interest rate forever. If you start fixing your credit with my credit repair instructions, you should have good enough credit to move your loan to a bank in two years -- and get a lower interest rate.
Contact me
at
(512)
322-0638
or use the form below.
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Owner
Financing
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It's rare that you'll
be able to buy a house which the seller will
finance for you. If that explanation satisfies you,
then you can skip
this section and go on to the next
one. If you
happen to find an owner-financing opportunity, you
can always return to this page later. There's a lot
to know about buying a house and spending time
learning things that don't apply to you may only
confuse and overwhelm you, and distract you from
the things you do need to know.
Next topic: Qualifying
for a loan
Owner
Financing
(aka
"Seller Financing")
You might be thinking, "Hey, could I just
make payments directly to the seller instead of
getting a mortgage? Then I wouldn't have to qualify
for the mortgage." That indeed could be a good
deal, except that owner-financed deals like this
are rare, and are usually available only when the
seller is unusually desperate, generous, or
stupid.
Put yourself in the seller's shoes for a
minute:
You own a $150,000 house, and you've
got $110,000 left on the mortgage. If you sell
it the regular way, you'll wind up with $40,000
in cash. (You'll get $150k from the buyer --
part down payment, part mortgage from the
buyer's bank -- of which $110k will go towards
paying off your existing mortgage, and you'll
get the rest.) You could do a lot with that
$40k: make a down payment on an even bigger
house, travel the world, add it to your nest egg
to retire, go to Vegas, etc.
 But
let's say you owner-finance the sale instead, in
which you get a down payment from the buyer, and
let him/her make payments to you for 15-30
years. First off, you won't be getting as much
money up front -- $15k on a 10% down payment, or
$30k on a 20% down payment. Second, you'd
have to pay off the existing mortgage before you
could sell it! So you'd have to pay your
bank $110k in cash, before you get the measley
$30k down payment. Most people don't have that
kind of cash laying around.
But what if you own your house free and
clear? That is, what if you've already paid off
your 15- or 30-year mortgage so you didn't have
to worry about coughing up a lot of money to pay
off the loan all at once? Then in that case, you
don't get your $150k all at once -- you have to
accept the small payments that trickle in month
after month from the buyer.
Why on earth would you do this? Well,
probably, you wouldn't, unless you're really
desperate to sell for some reason, or you don't
understand what a rotten deal it is for you, or
you're unusually generous.
So you see, it's usually not in the seller's
interest to finance the house for you, which is why
you'll rarely find houses that are
owner-financed.
Of course there are exceptions. The
reason that owners don't like to finance is that
there's nothing in it for them. Here are a few
cases in which there is something in it for
them.
- Financing as an investment. Sellers
usually want to get all the money up front to
either pay off their old mortgage and/or invest
in something else. But anyone who's investing is
just trying to get a small return on their money
every year, and they could do that by
owner-financing the home they're selling. If
they sold the traditional way and cleared
$150,000, they could take that $150,000, put it
in the stock market, and hope to make 8 or 9% a
year on that money. But instead they could
seller-finance the home to you at, say, 7%. It's
a smaller return, but unlike the stock market
their investment is guaranteed and
safe. As long as you make the payments,
the seller definitely gets her 7%, while with
stocks it's anyone's guess, and the investor
could actually lose money in any given year. And
if you don't make the payments, the seller can
repossess the house and then sell it to someone
else. (The seller could also simply rent out the
house instead of selling, and not only get a
return on her investment but also retain
ownership of the house, but some owners
don't like to deal with the hassle of leases,
maintenance, and otherwise dealing with
tenants.) Still, most sellers don't like to
owner-finance, and most of them can't
because they still have a lot left on their
mortgage to pay off, and so they need the big
chunk of cash up front.
- You offer a higher interest rate. One
way you might be able to convince an owner to
seller-finance is to offer to pay a higher
interest rate. Of course, you wouldn't make such
an offer if you're able to qualify for a bank
loan, but if you can't get a bank loan,
then offering a higher rate directly to the
seller might be what it takes to get you into
the home you want. Also, once you've had the
home for a year or two and your financial
situation improves you might be able to move
that loan to a bank.
- The seller finances only part of
the loan. Once I wanted to buy a home but I
couldn't come up with the last $36,000. (I had
no more cash left and couldn't get a bigger
loan.) But I really wanted the house. So I asked
the owner to owner-finance just that small part
of the cost of the house, and I offered him
twice the prevailing interest rate. He accepted.
A year later I was able to easily move that loan
to a bank at half the interest rate, so I only
had to pay the higher interest for one year.
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