Austin Owner Financing
Looking to buy a home but can't get an FHA or Conventional mortgage loan? You've come to the right place. Our firm is an investment company that have been buying and selling homes in the Austin metro for 30+ years. Some of these homes we sell with owner financing.
But we understand that you don't necessarily want to be limited to only homes we have on our books. Not a problem.
INTRODUCING...Custom Owner Financing For Austin Metro Homebuyers!
With this new special program we will purchase a home you like, and we will then sell it to you with owner financing. We may not be able to purchase every single home on the market that you might want. However, we'll work hard to make sure you have a home you like in the area you want to live in and in the condition you can accept.
This program will allow you to purchase a home that fits your needs in many pockets of the Austin metro, as long as you can afford it.
This is how it works in 7 Easy Steps:
STEP 1: You provide us with the information on
what you're looking for in a home such as: desired areas of town, possible zipcodes, number of bedrooms & bathrooms, approximate size in sq.ft.
STEP 2: You provide us with the
price range of homes you're looking to buy. You can visit
Zillow.com and see prices of homes for sale in your desired areas. Please see comments below on how to estimate monthly housing expense you'll have to plan for.
STEP 3: You provide us with some preliminary financial information: amount of funds available for down payment, monthly income, sources of income (job, business, or other).
STEP 4: Once we have all 3 pieces of info - we go to work and start looking for a home that fits your criteria and financial ability to make loan payments. We send you a list of homes that fit, and you'll start looking at these homes.
STEP 5: You choose a home, we'll firm up the exact financial figures for you: sale price, down payment, monthly payments including estimate for property taxes and insurance.
STEP 6: We'll use a 3rd party verification company to confirm your financials that you initially provided - to make sure you'll be able to afford the home you chose. If we can't confirm income and down payment we'll have to revisit whether we should (a) adjust our search criteria for a differently priced home, or (b) part ways.
STEP 7: We'll purchase a home from the owner and sell it to you on terms we previously disclosed to you.
Relationship Between Price and Monthly Housing Expense
- Your TOTAL monthly housing loan expense consists of a loan payment, property taxes and hazard insurance of the dwelling. We do not account here for utility bills.
- You can roughly estimate your TOTAL monthly house payment to be approximately 1% of the home price. Example, a home with a price of $400,000 will have an estimateld total monthly housing payment of approximately $4,000. For a $300,000 home you can roughly estimate your total housing expense to be $3,000/month.
- These are rough estimates as different areas of Austin metro have substantially different property tax multipliers, from 1.8% to 2.8%. These could cause major differences (up to $300-$500/month) in the tax portion of your loan payment.
- Additionally, some homes belong to an HOA (homeowners association). They often come with an extra $25-$50/month HOA dues that are NOT a part of your loan payment.
Relationship Between Down Payment and Monthly Housing Expense
The MINIMUM amount of cash down payment we can work with is 10% of the purchase price.
The amount you have to put down will affect your monthly loan payments. The more cash you have available to put down the less of the purchase price you'll have to finance.
Examples:
- A $300,000 home financed with 20% down payment will have approximately $270/month less in payments than when financed with 10% down.
- For a $400,000 home the difference in payments between 10% and 20% down is $360/month.
- And for a $500,000 home the difference between 10% and 20% down is $450/month.
The point here is to pick the price range for your desired home in line with your available cash down payment and your monthly budget. If you're only prepared to spend $3,000/month on your total housing expense, please set your expectations to homes with prices close to $300,000, plus or minus. If you have a housing cost budget of $5,000/month, look for homes in the price range of $500,000. And so on.
When we discuss specific homes with you we'll be able to provide a more precise estimate of your monthly housing expense.
Start Your Austin Area Home Buying Process Now!
