If you haven’t suffered a devastating bankruptcy or lived through a financial dilemma, but have poor credit due to other predicaments such as self employment or just starting a new job for less than two years, you’ll still struggle with getting a home loan. Because the mortgage market is continually fluctuating, it’s best to consult with local Santa Ana Realtors, a reputable home loan representative or mortgage professional about your choices.
One viable option that works when traditional lenders won’t work with you is owner-will-carry (OWC) financing. If you’re struggling to establish your credit, have little in the way of savings, and earned just a little more than minimum wage, this avenue can help you enter the world of home ownership. Homeowners who are amenable to this type of financing are typically mature sellers who are frustrated with supervising their rental properties, but still want the monthly cash flow a rental property brings.
These sellers are eager to unload their properties because it frees them from the hassles problem tenants, clogged sinks, and faulty air conditioners. They also receive a great return on investment which surpasses the amount they would receive from a bank savings account or CD account.
The beauty of owner or seller financing is the flexibility to work with any homebuyer a seller can come to agreement with. If a traditional bank won’t consider your application, explore the alternative of OWC financing. In fact, you may choose to circumvent regular financing and try OWC financing as your first alternative. Many real estate investors and homebuyers depend exclusively on this financing option without fretting about qualifying with a traditional bank.