Here's my situation:
I own a house that I owe $30K, and it's worth $65K. My renters want to buy it, but are not in a financial position to get a mortgage (down payment and credit issues) I would love to sell it to them, and also be the bank for them on $65K.
Should I go Sub2 route? If so, how should I structure the deal?
or Lease option?
I want out of this property, and I want them to be responsible for taxes, insurance, maintenance. Thanks in advance for any advice out there!
Here are some rules if you're a landlord wanting to sell on terms
What not to do: sell on contract for deed or sub 2
You can bring them to a RMLO and see where the problems are, mortgage origination is never been more difficult.
To play it safe I would bring them down the bank, have them open up savings account, and automatic withdrawal out of their paycheck for 5 to 10%, and that money is for the down payment
Then I would give them a lease and a right of first refusal of which is better for you than giving them an option
Have them go through the FHA home education program
If you want to help their credit, help them do a "bank round Robin" to create a history on their credit report thats brand-new
You go to bank one, give the bank $1000, ask for $1000 loan that's reported on the credit report, pay it off, go to bank too repeat that process. You can double up on payments and have two paid installment loans on your credit report within six months
Open up a Macy's card, buy something, pay it off. Bill be an open account paid as agreed account on the credit report.
Go to myfico.com and learn about building credit
That's the best way to help your tenant buy your house
Give them two years to get the mortgage.
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