Offlinecan someone please help me understand. I see all the time when there is a house for sale and the investor will mention some kind of finacing 100% 80% 90/10 ...ect. Why would he/she (the investor) care what type of financing I (the buyer) gets?
Thanks,
D in DE
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Don't Wish the Past, Create the Future! - DH
They don't as long as 1) The buyer can actually get the financing and 2) It's attractive to the buyer.
In this market, fewer buyers can qualify so if 100% financing is available, more buyers would be interested in the property ie it's marketing.
Due to the recent foreclosures, buyers are finding it increasingly challenging to find 80/10/10 financing, 80/15/5, and the like. Seconds typically fall off during a foreclosure, and so they're now few and far between. The incentive for getting a 10% or 15% second is that the buyer can conserve their out-of-pocket cost and they can save on PMI (private mortgage insurance) that extists on loans above 80% ltv. So, that is one explanation for why investors are including financing remarks in their marketing.
how does the investor know what kind of financing to include in the marketing of their house? How can I offer 100% I am just an investor. I guess I just dont understand this one....
Thanks,
D - De
Don't Wish the Past, Create the Future! - DH
It's really whatever the seller is willing to do ie more is better. So 100% seller financing is better than a 5% seller carry.