House Purchase without a bank or lender loan?

In the event you could not qualify for a bank or mortgage lender loan which, in your opinion would be the best alternative method to purchase a house?

1. The current owner financing the house carrying the mortgage note while placing you on the title deed?

2.A rent to own?

3.A lease with an option to purchase?

4 Answers

  • 8 years ago
    Favourite answer

    By far, owner financing is the best option for the buyer. Not with a land contract, but with a note secured by a trust deed. This way the buyer is on title and insured by title insurance....just make sure that the buyer purchases title insurance.

    As you well know rent to own and even lease with option to buy seldom works out for the buyer because they often are not able to get financing down the road. Also, when the seller carries the financing with a trust deed the buyer can write-off the property taxes and loan interest on their income taxes. With a rent to own or lease with option the buyer can't.

    It is often a great idea for the seller to carry the financing if he doens't need the cash. I know several investors that love to carry the financing on their rental properties they sell. The seller get way above CD rates that banks offer and it spreads out their capital gains profits over the life of the loan vs. having to pay capital gains out in one lump sum. The seller should get a large down payment which would reduce his risk.

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  • 8 years ago

    1. Best for the buyer, terrible for the seller. Ain't. Gonna. Happen.

    2. Best for the seller, terrible for the buyer. Don't. Do. It.

    3. Acceptable to both buyer & seller. Not practical.

    Consider option 4. Just lease the house until you have accumulated enough to buy it.

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  • layman
    Lv 4
    4 years ago

    you would be able to yet why make subject concerns complicated. without ssn you would be able to now no longer document taxes so the interest deduction will substitute into wasted. An underwriter can't confirm credit or archives of employment, and that they are in a position to't substitute into conscious of you precisely. you do now no longer would desire to desire to have a green card the two to purchase a house. Your gifting away somewhat some funds needlessly by using employing now no longer with the flexibility to maintain on with the tax reward homeownership facilitates. as quickly as you sell the living house this undertaking will arise decrease back at the same time as escrow tries to 1099 your enterprise proceeds. the varieties you would be able to get carry of to make this possible are greater advantageous purple tape then that of in straightforward terms getting the SSN card. it somewhat is ironic that the cardboard states on it now no longer for identification yet optimal each and each element from drivers licenses to credit comments require it for powerful identification. Now lenders additionally would desire to conform with place of commencing up risk-unfastened practices act and image duplicate your drivers license and ssn card or green card or passport. you would be able to run into an argument there additionally. perfect of achievement whichever way you compromise directly to bypass with the guidance offered in those thoughts.

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  • 8 years ago

    All of those options suck for buyers except 1, which no seller in their right mind would do. The best option is to save money and fix your credit.

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