For Sale By Owner Advantage
If you are a for sale by owner you can take the benefits of this
program and center it around selling your home. There are many
people that would love to purchase your home but they think they may not
qualify for a loan, especially if they have little money for a down
payment or they have a few glitches on their credit.
The fact that this mortgage allows for unlimited seller concessions,
and that the LTV is based on the APPRAISED value and not the purchase
price gives you the advantage. You could put together an irresistible
offer to put in your advertising if you can sit down with
your calculator for a few minutes. Of course you should probably get
a broker to work with you so you have somewhere to send your willing buyer
to get the loan.
Why not offer to pay all of the buyers closing cost instead of reducing
the sales price.
As an example, you have a home on the market for $200,000 and there has been little
or no interest. The first thing that comes to mind is the home is over priced and
you decide to reduce the sales price 10% or in this case to $180,000.
A better option would be to offer to pay all of buyer's closing cost and keep the
price at $200,000.
Doing it this way would net you $8000 more and maintain the sales prices in the
neighborhood. Secondly, if you reduce the sales price to $180,000 you may have to pay closing cost
reducing your net even more...
Use the 6% concessions as a tool to get your sales price or at least close to it.
If the property is not in a rural area this loan will not help.
However the same principles apply to a FHA
home loan or a VA Loan.
Visit those sites to understand the guidelines.