We were in the process of putting our house on the market when I ran into a friend (more an aquaintance)....she & her family are looking to get out of their rental and buy something but they cannot go through a bank for a loan due to their religion. They do have a very large amount to give as a down payment, so it seems like a good deal. We were told about "holding the mortgage" and do realize that we have to consult & work with a real estate lawyer. Just wanted other opinions of all the pros & cons of doing so for this family. In the meantime, while we are "holding the mortgage", would we be able to get another mortgage to buy another house for ourselves? Thanks for all advice!

GlindaofOz

What religion prohibits one from getting a loan?

I would imagine that if you are carrying a mortgage it would be difficult to get one for yourself.

What is to stop them for ceasing payments on the mortgage and leaving you holding the bag for the payments and potentially ruining your credit. If they have a substantial amount of money for the down payment then I suppose they can finish saving up the rest and buy a home later on.

something about this screams DO NOT DO IT.

DianeV Sr Loan Officer

Their religion prevents them from getting a loan from a bank but not from you? Hmmmm...

Don't do it. You could still get a loan but you would have to produce a copy of the mortgage with these people and probably show that y ou have been receiving the payments for at least a year before the bank would count that income.