Posted by Kevin Bridges on October 30, 2002 at 23:43:03:
I was just reading one of articles on this site named, "Creating Marketable Notes", and it was talking about risk strategies for noteholders. Ideally, it said that noteholders should look for a potential buyer with a credit score in excess of 600. With that type of credit, the article suggested that the noteholder could finance up to 85, possibly 90% LTV.
My question is this: If a potential home buyer has a credit score of over 600, what incentive would he/she have to choose owner financing to buy a home? Wouldn't he be better off choosing conventional financing through a bank? Especially if the interest rates are relatively low, the buyer has a stable work history, and conventional banks are willing to finance with a lower down payment.
- Re: Question saintamand prosper 17:15:06 11/11/2002 (0)