Need help with purchase of condo
Ok, here is the situation... I am trying to purchase a condo for my primary residence. So far, I was declined by traditional financing (portfolio loan) because my DTI ratio was too high, though I have rental properties that + cash flow :-/. Other factors were the loss i claimed on my tax return, and the HOA with this condo ($435 monthly).
I am asking the Bigger Pockets of ways to get this property? I know the owner is motivated and wants to get rid of the condo. The traditional way; the negotiated price ended up at 218K, but of course like i said previously i couldn't get financing through the traditional way
I offered the lease option to the owner with his original asking price of 227K, 4K down, 0% interest, amortization 10yrs, balloon at 5yrs, but pay off complete loan around 2.5 yrs (amount i qualified for through traditional financing was 180K). He stated he wants everything out of his name as quickly as possible.. again motivated
What are others ways to get this property? I have been reading up on subject to deals. I think this will address his need of dumping the condo, correct, though his name will still be on the loan? There is a mortgage on this parcel, but i don't know what it is currently. In order to structure a subject to deal what is needed to make it work, and how should i approach him? How well does a owner finance work with an existing mortgage? would this be a route? Are there other ways?
I am assuming I would need to know the current loan info, but what if the current loan info doesn't match what he is trying to sale it for? How can we assure him a deal won't affect the comps or he won't lose any equity that he may have?