Please Help! :help
I am W2, but my husband is self-employed. We would like to purchase a new construction in a up and coming community but not eligible to qualify for a traditional mortgage. Is it possible to find a lender or investor that would purchase our home and let us pay the mortgage for 3 years, then purchase after 3 years? I know this seems like an unreal request, but just thought I’d put it out there to see what the feedback was. I know some homes are offered at a lease to purchase option, but we would really like to choose our own home. We are located in Nashville TN. Thanks :biggrin
Since there wouldn’t be any equity, I really don’t see a serious investor buying a new house for you so they can finance for you.
However…you can certainly look for a lease purchase home or owner finance near you, just go in with your eyes open.
Your husband will need 2 years of tax returns and he will have to bite the bullet and show that he is making as much as he can instead of taking all the available deductions etc.
We just had GREAT home in TN near Lookout Mtn that was a lease purchase for about $3700 a month.
I agree that there would be no incentive for an investor to put up credit or money unless you paid a substantial premium over the cost of the home. You might want to look for a builder who is over extended or in a financial bind…you most likely will not need to look very far in the current economy.
Personally, I’ve done hundreds of L/P’s and a good percentage were with builders who were over extended. One time I made an offer on 5 new homes from one builder, 2 immediate and the other 3 at 1 per month after that. By the time I got the first 2 of them under contract, it provided such relief for the builder that he appeared less desperate and the results were the other three homes went under contract.
Ask and you will receive! There will be a builder if you search far enough that will provide terms without you having to pay an investor a premium over the retail price.
Once I found a builder going broke and I asked the agent for the bank to make the following offer: Full asking price, convert the builder loan to a 30 year fixed rate mortgage with a 7 year balloon. In my offer, I required the bank to make the 30 year loan with a one time non qualifying loan assumption.
The agent said that was out of the question and that the bank would not accept such an offer. I told the agent that she had the requirement to present my offer according to the laws of her real estate license.
Two days later, I received a call from the bank’s attorneys that the papers were ready and when could I come to closing. Nearly fell off my chair! All I needed to bring was a check for the pre pays on the escrow for taxes and insurance and the house was mine.
Although this was an unreasonable request, it provide remedy for the bank to get a ‘non performing note’ off the shelf which would satisfy their stockholders.
Find some nice builder homes and make some unreasonable offers…make sure it has potential to satisfy ALL parties involved and you will get results.
Hope this helps.
I do not know if I fully understand your goal. Are you looking to sell your home and buy another or are you looking for an investor to help you buy a property? If you can provide a little bit more information, I can see if we can better able to help you here on this forum.