In this relatively high mortgage interest rate market, you’re probably wondering, how can you find an affordable way to buy a Colorado home?
We found a mortgage hack for you!!! Watch this video…
Let’s explain this situation: One of the biggest transfers of wealth in all of human history is taking place and will be taking place over the next decade or two as baby boomers look to downsize and pass along their wealth. Much of that wealth is tied up in their real estate holdings. Many of those homes are paid off.
So how can this benefit you as you look to purchase a Denver home or a Boulder home or a Fort Collins home or any other Colorado home? As they’re downsizing, many of these homeowners have discovered that trying to sell in this terrible mortgage rate market has been a little tricky. Home buyers can’t or don’t want to buy a house with a 6 or 7% mortgage rate.
What if these sellers we just mentioned became the mortgage bank? What if they could loan you the money to buy their Colorado homes?
Seller financing has been around longer than banking has been around and has been used a lot throughout various times in our history. We like to call it the mid -mod of the mortgage market.
Savvy real estate investors and commercial real estate people use seller financing all the time. It’s how the smartest investors finance businesses and real estate.
What is seller financing and how is it going to benefit you?
Simply stated, seller financing is just a seller taking payments from you to buy their home. They become the lender. This is NOT a Contract for Deed or a Land Contract: For more CLICK HERE.
- You still need to give them a down payment, which you’ll do at closing,
- You still need to qualify for the mortgage,
- and you still get ownership of the home.
The Seller ultimately becomes the lender or the bank. Now the great thing about this option is that the seller can offer a much better interest rate than a bank can right now. Because their homes are paid off completely, they have lots of flexibility on this piece. So realistically, most sellers would probably offer a rate low enough that would both give them a return and make it affordable for you as a qualified buyer.
5280Lend.com, will make this option turnkey for both home sellers and for you as a buyer:
- We help the home sellers with paperwork, underwriting, and procedures of executing this game plan,
- We help home buyers with understanding this process and with qualifying for the financing, which is very similar to how you’d qualify for a traditional mortgage,
- We act as an intermediary between the buyer and the seller,
- We will actually set up a third -party payment system so that payments, balances, and account history are all managed by an outside company, and lastly,
- Our role is to make sure the buyers and sellers understand the exit strategy involved.
Because let’s face it, neither one of them probably would like to remain in this position forever. Sellers at some point want to get all of their money from the sale of their home, and buyers probably would prefer a more permanent financing option.
Exit Strategy:
5280Lend.com will REFINANCE this loan as soon as traditional bank/mortgage rates drop to a point that makes it feasible for you, as the buyer, to get a new loan.
Federal Reserve Bank comments have already indicated that they will, likely, be reducing rates sometime in 2024.
At 5280Lend.com, our job is to CONSTANTLY be on the lookout for helping you minimize and reduce your cost of borrowing money. This is our primary goal and why we have developed this program to begin with.
