Credit baggage from 2008 has been colliding with current opportunities for most of my clients. The recession in 2008 has hindered many of my clients’ abilities to gain high enough credit scores to participate in the now recovering market. Over the past year I have had several buyers come to meet with disappointment because they were unable to meet the lenders requirements due to short sales or foreclosures. Luckily, I work with the talented Anna Kimball who has helped many of my clients reconstruct their credit to quality for a conventional loan.
However, sometimes Anna’s magic is not strong enough to counter the credit issues that some of my clients have been burdened with. In these instances I like to use my creativity to find a way for my buyers to be able to purchase the home they desire.
A buyer recently came into my office with a good income, great down payment but was unable to qualify for a conventional loan. Even though he was not qualified for a home, I advised that he begin looking at a list of homes that I compiled. Simultaneously I called one of my investors that is interested in having an investment property and decided to partner with my buyer. My buyer chose the home that they would like to purchase and then the investor purchased the house. The investor was able to provide owner terms through using a very safe lease option agreement. This means that he has the safety of still owning the home and the buyer has the safety of an agreed upon price. In addition, this is profitable for both parties because as the value increases above the preagreed price then the buyer and the seller get to split the increase. This is a very fun and creative way to fund a home!
Looking for help finding a way to finance your dream home? We would love to help! Just type “Dream Home” in the comments and we will get back to you with some ideas.