Buying home listed 15% below market..hard money loan needed
Member since 2025 · 5 posts · 2 votes
Buying home listed 15% below market..hard money loan needed
9 Replies
Hi James,
Given your situation, a potential short-term solution could be to explore a seller-financing option. This would allow you to bypass traditional financing and directly negotiate terms with the seller. Another option could be a lease-to-own agreement, where you rent the property with the intention to buy it later once your credit improves and your COE is issued. Additionally, if you're able to make a larger down payment, some private lenders or hard money lenders might consider offering you financing, though these typically come with higher interest rates. Once you're able to refinance with a VA loan or better credit terms, you could pay off the short-term loan. It's essential to discuss all these options with a mortgage broker or financial advisor to ensure the best approach for your long-term goals. At Aslan we work with a range of lenders, and I'd be happy to see what we could do.
Ty Coutts - Aslan Home Lending 543 Reviews- Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes1y
Based on what you've described, seller financing or having someone else buy the house and lease it to you with a purchase option until youre able to qualify are likely your two best options. Having someone else be a coborrower on the loan with you to bring the needed income could be an option, but it sounds like your credit will be an issue.
Hard money is only offered on investment properties in 99.99% of situations - since this will be owner occupied, that is basically not on the table.
Seller financing is a great option in scenarios like this, but this pathway is dependent on what the seller needs. If they want their cash now, this can be tougher to execute. There are a few ways to structure the paper so that it can be sold quickly (within 6-12 months or so) without a huge discount, but ultimately, if the seller wants their money within the first year after selling financing, theyre going to take some kind of a haircut.
I buy seller finance notes in SC and also lend in SC. Give me a call if you want to walk through the ins and outs of seller financing so you can present the idea to the seller.
- Member since 2025 · 5 posts · 2 votes1y
Quote from @Patrick Roberts:
Based on what you've described, seller financing or having someone else buy the house and lease it to you with a purchase option until youre able to qualify are likely your two best options. Having someone else be a coborrower on the loan with you to bring the needed income could be an option, but it sounds like your credit will be an issue.
Hard money is only offered on investment properties in 99.99% of situations - since this will be owner occupied, that is basically not on the table.
Seller financing is a great option in scenarios like this, but this pathway is dependent on what the seller needs. If they want their cash now, this can be tougher to execute. There are a few ways to structure the paper so that it can be sold quickly (within 6-12 months or so) without a huge discount, but ultimately, if the seller wants their money within the first year after selling financing, theyre going to take some kind of a haircut.
I buy seller finance notes in SC and also lend in SC. Give me a call if you want to walk through the ins and outs of seller financing so you can present the idea to the seller.
- Member since 2025 · 5 posts · 2 votes1y
Quote from @Patrick Roberts:
Based on what you've described, seller financing or having someone else buy the house and lease it to you with a purchase option until youre able to qualify are likely your two best options. Having someone else be a coborrower on the loan with you to bring the needed income could be an option, but it sounds like your credit will be an issue.
Hard money is only offered on investment properties in 99.99% of situations - since this will be owner occupied, that is basically not on the table.
Seller financing is a great option in scenarios like this, but this pathway is dependent on what the seller needs. If they want their cash now, this can be tougher to execute. There are a few ways to structure the paper so that it can be sold quickly (within 6-12 months or so) without a huge discount, but ultimately, if the seller wants their money within the first year after selling financing, theyre going to take some kind of a haircut.
I buy seller finance notes in SC and also lend in SC. Give me a call if you want to walk through the ins and outs of seller financing so you can present the idea to the seller.
The sellers do need their cash pretty soon. We leased with an option to buy for the first 6mos and they gave us an "extension" for another 6mos to work this out. This VA issue has taken longer than expected. I would like to discuss options for someone else to purchase and I buy from them. Would that be an investor, friend, family member? I've talked to a few people about this, but no takers yet.
- Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes1y
It needs to be someone that you can put a lot of trust in. Once another person owns the property, actually enforcing any claim that you might have to it will be difficult and will be akin to a handshake deal. Sure you can have a lease-purchase option on it with the new owner, but enforcing that can be difficult if not done thoroughly. It's not cut and dry - courts can exercise of a lot of discretion with this stuff.
We do deals like this occasionally, but we're also honest people and stake our reputation and livelihoods on doing what we say we will do. We have one of these under contract in Louisiana currently - we're stepping in to buy a property from a seller where the current tenants want to purchase it but cant qualify and the seller cant wait. We're giving the tenant a two year purchase option that we will honor, but the terms are very clear and expectations are set firmly - we will honor the purchase option but will not extend or delay beyond that; the house is going on the market after two years if they havent bought it.
Is the home distressed, or can it qualify for financing as is?
- Lender · Boca Raton, FL · Member since 2017 · 42 posts · 11 votes1y
Hi James,
IS this for an investment property? If so, we have several ways we can get this done for you.
Jerry Starr | Insource Funding | 800-805-3391
NO-Doc Rental Loan - Member since 2025 · 5 posts · 2 votes1y
Quote from @Jerry Starr:
Hi James,
IS this for an investment property? If so, we have several ways we can get this done for you.
Jerry Starr | Insource Funding | 800-805-3391
NO-Doc Rental LoanNo…this is not an investment property
- Member since 2025 · 5 posts · 2 votes1y
Patrick, I would like to discuss further. I’m open to a few options, as this property is too good to pass on
- Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes1y
Quote from @James Walker:
Patrick, I would like to discuss further. I’m open to a few options, as this property is too good to pass on
No problem. I sent you a DM.
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