Becoming a homeowner is a difficult task for many young Americans. Living in the remnants of the 2009 economic recession, it’s not easy for young people to secure a well-paying job and develop strong savings. Many have low-average or poor credit scores and poor debt-to-income ratios. Therefore, most young people have a hard time qualifying for a traditional mortgage from a bank. But while most young Americans have to overcome many obstacles to become a homeowner, not all hope is lost.
Banks will not provide a mortgage to young borrowers. Although, private property owners who have a property they want to seller-finance and sell in the near future can tap into this buyer pool of young borrowers. Seller financing will allow a property owner to sell their home faster and get an ample return on their investment. When they sell their property and create a mortgage note, they can sell their mortgage note to a loan acquisition firm on the secondary market. This opens the door for young home buyers who do not qualify for a traditional mortgage. They can purchase a seller-financed property, increase their credit score (if the private note holder sells the note to a corporate note buyer), and refinance the home through a traditional lender (assuming the note does not have a pre-payment penalty).
Unlike banks, ninety nine percent of the corporate note buyers out there do not review the borrower or buyer’s personal finances for residential mortgage note acquisitions. Note buyers can buy a residential mortgage note with low-average to poor credit. This the major difference between traditional mortgage lending through a bank and loan acquisitions of a seller-finance note on the secondary market. Mortgage loan buyers on the secondary market buy residential mortgage loans that have at least 5% hard equity in collateral and a buyer credit score as low 525.
Because not every deal will be salable, it’s important for the property seller to contact a note buying firm before executing a sale and selling real estate notes. Otherwise, they could get stuck with the note that they are trying to sell. Contact a reputable mortgage notes buyer to get the best deal for your mortgage note today.