Updated over 8 years ago on . Most recent reply
Seller financing or Conventional Loan? First time buyer!
I am a first time home buyer, and want to make it a business for me and my partner.
We are looking at a seller financed home in a good neighborhood in Keller, Fort worth. The owner has a few properties and this is his first seller financing deal. He is asking $160.000 for a 3 bed, 2.5 bath and double door garage. Original purchase price was $85.000 20 years ago, put $27.000 into remodeling and $50.000 into maintenance over the years. All in all his cap cain is about zero.
The house is in good shape and has a new 50 year impact resistant roof with certificate. New AC unit as well as new stairs.
Now! The numbers the seller wants is $160K at 6.5 APR and $32K down (20%) over 15 Years. The closing cost is estimated at $2K. This would give a PITI of $1500 per month as the taxes are currently $3500 annually and insurance is $800.
My question is: will this deal be better than just using a conventional loan through a bank? We have a credit rating at around 650 due to being new and not building credit. We have the option of either an FHA, conventional or VA. But we want to save FHA and VA for something bigger.