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dizzydez1103 · Feb 1, 2007, 08:48 PM

Hello
I'm having a few questions on what I should do. My fiancé and I are wanting to get a new home to have for a long time. Well we had an offer to do a contract for deed with a lady we know. But I'm concerned if I should just wait and get a mortgage loan or go through with this ladys offer. My only issue with getting the mortgage loan is that my fiancé has bad credit and his income is the highest. My credit on the other hand is OK I don't have much credit established but its not negative but also I only work part-time and the other part I stay home with my son. When I contacted a lender about getting a mortgage loan she pretty much told me that if I personally had more income I could get the loan. But I'm not going to be getting more income for at least 3 more months and then I will have to establish that I will be getting more income for probably 3 more months, because I will be getting a better job offer. So I don't know which way I should lean on? Does anyone have any advice for me!! Thanks for your time

Fr_Chuck · Feb 1, 2007, 08:56 PM

There is nothing wrong with a contract for deed, I sell a lot of my houses that way. But I do it by selling the house at too high a price and getting way too much interest rate if you actually figured it. But when you sell it on contract I can merely name a monthly payment for so many years, since it is not a true loan.

So on a contract unless they are just nice, they are selling you the home with the entire idea and hope that you won't be able to keep making the payments, you get late and default and it merely changes it to a rental, you loose all your equity and they don't have to foreclose, they only evict you since you convert over to a rental. So you can and normally will lose you home a lot faster on a contract for deed than a real mortgage.
( depends on the contract and the person you are dealing with)

Next of course you have to hope the person you are dealing with is honest and will and has a clear title(deed) to transfer to you when you finish paying them off.

And if you use a mortgage broker, they can normally find a lender for almost anyone.

In the end you should investigate each and choose what is right for you.