I'm in the process of selling my first house owner finance and wanted to know what other investors are using to qualify buyers.
I've hired Texas Pride and Lending to do all the back ground checks on the buyer. But I'm needing to be careful, I don't want to have foreclose on them.
REQUIREMENTS THAT I HAVE SO FAR:
Proof of Income (Self-Employment accepted)
Two months of paychecks
Two months of bank statements
Proof of 12 months good rental history
3 times the mortgage in pay coming in each month
However what Debt to income ratio are you looking for? Credit score do they need to have?
What else am I missing here.
Are you selling to another investor? Do they have notes held by other sellers? If yes, I'd ask for references.
One definite: Skin in the game. Have them put in a large enough down payment or other collateral to make defaulting painful. Good luck!
That is a good idea to make the payment large enough so they can't walk away. I normally ask for 10% down, is that the amount you ask for too?
I'd think 10% is good, if you feel comfortable with the other aspects. I'm curious: what made you decide to seller finance this property?
I have 6 rentals, and I'm wanting not to be responsible for repairs. I really like the idea of just getting a check each month, and knowing it's all mine. (minus taxes hahaha)