Low Down Payments And Poor Credit Responses
I have found that the adverts I have run for house under LEASE/OPTION that most people have very SMALL i.e 1000 dollars for a down payment and want under 1000 dollars a month payment. Most people are living from pay check to paycheck and have terrible credit. Where are those Americans who have cash saved for a down payment and still have bad credit.. Most people with a 640 beacon can get finance for a mortgage at least with 10% down... now they can almost get in with no money... makes it hard for a L/O exit strategy.. Is any body else coming with this scenario??.. Its not a very profitable one on the front end or the monthly cash flow. I can not wait to find a tenant and keep running 200 dollars adverts every week. Any suggestions...
Your application is non applicable to your area of operation. The time has come the Walrus said, to discontinue the walk and concentrate on the Oysters.
Offer to sell property to Qualified Buyers who have good Fico Scores but alas due to the high price of stuff have no downpayment.
A non profit organization advances to them the downpayment and their closing costs. They obtain that mortgage from an Institutional Lender in and around 97% of "Sales Price" The "Sales Price" is increased to include costs and down. On recordation of deed you have your full price and the Non Profit has returned from Sellers Check the advances made.
In the interests of teaching problem solving I leave to you how best to structure your Non Profit etc. There are at least five variations on this method. I always liked the Religious ones best. I guess it's because I am a frustrated Mary Knoll'r.
The good is that someone gets into a house of their own. Paid a little bonus above true market to do so but the accumulative good is worth it. The picket fence, children off to school in the morning, a feeling of belonging to a social group etc. etc. etc. Sounds like Mary Baker Eddy on a good day.
Cheers Lucius