Once the buyer has enough “skin” in the deal, Gaston can close with owner financing at the predetermined, mutually agreed upon price and terms. Or the buyer can close with a new bank loan. According to Gaston, “There are so many reasons my buyers like some time before qualifying for a mortgage. They may need to sell their house, work on their credit, establish more time on a job or establish two years of provable income on tax returns when self-employed. All our buyers are put in touch with a sharp mortgage broker who creates a plan for them. We can recommend an affordable credit repair company that can do unbelievable things given even a short 6 to 12 months to work on a file. This also helps out some sellers who have found themselves in over their head.”
“We do everything we can to get our buyers permanent bank financing. It’s a win-win because we pay sellers all cash and fund our deals with private lenders. Our lenders are mostly local individuals seeking alternatives to low bank CD rates. They earn 8to 10% interest on real estate notes well-secured by our properties. When we get our buyer cashed out, we finally make our money and can payoff our investor. These investors usually want to reinvest allowing us to buy even more houses.”
Unfortunately many of the mortgage programs once available are now gone. It’s reported that 75% of the available lending disappeared when FHA changed their rules last October and again early this year. But, if you have money to put down and can prove your income, there are still loans available now. In fact, some rural development loans and VA loans still allow qualified buyers to borrow with no money down.
“We help all of our buyers get a bank loan as quickly as possible… or we finance them ourselves. But we’ve never relied on banks. That keeps us in control and maintains our sanity. But we get those loans done every chance we get. In fact, sometimes a buyer can qualify and doesn’t even know it. Other times they can qualify but need a flexible seller. We’re one of the most creative and flexible sellers you’ll ever find,” says Gaston.
Does buying or selling a home have to be difficult? Maybe not!
“President Obama says today’s economy is the worst since the Great Depression and it may take many years to recover. Unfortunately I think he’s right and so do many sharp economists.”
Interested in selling your property quickly and easily? Looking to buy a new home without bank qualifying? It may be worth checking in with Steve Gaston and Covenant Property Solutions, LLC. Email them at [email protected] They’re in a unique position to help buyers and sellers overcome the new challenges created by the recent mortgage market meltdown and credit crisis. And if you’re looking for a conservative way to earn 8-10% interest on your idle cash savings or retirement funds, call and ask for their FREE private lenders info packet.