It would seem that the housing market would be thriving. Prices have stabilized. Borrowing is cheap, even the job market is recovering. And yet home sales are not on the rise.
The problem is, credit. Buyers can’t qualify for a home loan. Back in the late 1990s and early 2000s the average FICO score to qualify for a home loan was in the mid-600s; now the average borrower has a credit score of about 740 – significantly higher and it’s more difficult to qualify.
If you’re a seller that has had difficulty selling your property, you may want to consider alternative methods. If you own your home free and clear, or have a small mortgage balance, you can offer your home with seller financing.
What are the benefits?
- It’s Quick – You can sell your home more quickly because there is no bank loan procedure. You skip the lending process, which significantly slows down the settlement process.
- Escrow Control – It won’t fall out of escrow because the buyer couldn’t qualify for the loan. You are the lender and you decide whom to sell it to.
- More Money – most of the time you can sell at full market value with seller financing. And, there are no realtor fees, which means more money in your pocket. Also, there are reduced closing costs when no lender is involved in the transaction.
- Tax Savings – taxes are owed only on the amount received each year rather than on the entire sale price.
U.S. Property specializes in buying properties with seller financing. Call us for more information at (800) 394-5709.