5/2/10

Buyers? Is Seller Financing An Option?

So let us, for the sake of argument, say that you are unable to secure a home loan with a mortgage broker or banker. You have a good job history, make good money and have saved money for a decent down payment, the problem is your credit scores. Can you purchase a home using seller financing?

The answer is yes. But buyer beware!

Issue #1:

A seller that is offering seller-financing is now required by law to be a licensed Residential Mortgage loan Originator (RMLO). The only two exemptions to this rule is if the seller is seller-financing their personal property (homestead) and if the seller is extending financing to a family member.

To be clear, seller financing is still allowed in Texas, but the seller has to be a licensed RMLO or meet one of the exemptions noted above.

Don’t get suckered into something illegal because someone may un-intentionally be taking advantage of your poor credit. Simply contact a credit repair company to assist you in repairing your credit. Some situations can take 4-6 months to repair, others may take longer. Contact me for a reputable company.

Issue #2:

If the seller has a mortgage on the property and defaults on the loan, guess who is out of the down payment and lease? That is right… you. You do not control the mortgage payment (which is a mortgage agreement between the mortgage banker/broker and the seller) therefore you cannot control the seller-financing for the term of the agreement. What protection do you and your money have? None!

If your credit scores are too low to secure a mortgage loan, be patient. Simply contact a credit repair company to assist you in repairing your credit. Some situations can take 4-6 months to repair, others may take longer. Contact me for a reputable company.


Are you dealing with an informed real estate agent that is looking out for your best interest?