I Have A Interested Buyer, But They Have No Credit
I have just finished rehabbing a duplex in my area and I have just ran an Ad in the local newspaper to sell the home. I received a phone call from a interested buyer who is looking for a duplex. He tells me that he filed for bankruptcy 5 years ago and he doesn't believe that he can get any financing to purchase the home. His credit history is not good from what he tells me. I don't want to rent it out, I want to wholesale the property to build up capital to purchase future investment properties. Is there anyway that this potential buyer could come about to finance this home for the purchase price? If anybody has any suggestions or strategies, please let me know.
be patient. it sounds like you just ran the ad and you are dealing with the first caller. I would at least wait until I got more prospects.
Do some research and maybe you can direct these people to some hard money lenders who deal with these type of credit challenges.
You could:
Owner finance, with a cash down. He may not have credit, but he might have cash. Ask for 10%. Use this cash for other deals.
Hold the note for a year, and if he pays you on time, help him get financing. He will be eligible for a 're-fi' after a year and will have an easier time getting a mortgage.
I did the very thing last year, it worked great.
I'd have your seller call the mortgage broker you deal with. Let him/her deal with the financing.
I agree with myfrogger. They should call broker. It is so easy to get a mortgage for an owner-occupied home. You only need to be out of BK for two years. FHA can go to 97% and the seller can pay 2%. Even with no credit most buyers can get 80% financing.
GOOD LUCK!!!!!!!!!
Lori
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Have you thought about doing a lease option? Or do you just want it off your hands right away?!?
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