Owner Finance Buyer Requirements Needed

4 Replies

Hello Everyone,

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.


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.

Thank you

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!

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?