No bank qualifying

No bank qualifying is nothing new, in fact that’s how it was done before the creation of banks. General assumption by the average consumer is lead to believe that a buyer must financially qualify and get a loan from a bank. An established fact is that over 30% of real estate transactions do not involve any bank and that number is actually increasing. The American dream is to own a home and shelter is  number two right behind food as a heirachy human needs. When a buyer gets turned down as most do in the current economy, the news of no bank qualifying is music to the ears of many eager “wannabe”  future homeowners.

What about no bank qualifying?

Simply stated…no bank qualifying is getting the funding that you need to purchase a home without over-regulated lending qualifying procedures that are intentionally setup to disqualify most all buyers. The over reacting to the no qualifying policies of lenders a few years ago have been replaced with extreme over cautious verifications and restrictive borrowing criteria that eliminates 90% of potential conventional lending. With that said…where does no bank qualifying actually fit in? Let me explain…

Where do I find no bank qualifying?

Basically no bank qualifying is lending by the seller to the buyer. When a seller is motivated to sell in order to move on to his next venture, the no bank qualifying becomes tailored to an easier set of verifications and policies. For the 30% of sellers that own outright and have no mortgage, they can now become the bank and lend by their own established rules that basically are more emotional and influenced by “getting ur done” and not dealing with any “banking red tape.” These sellers are not lay downs, but are interested in more second chances and also the spirit of helping people in need that have some credible willingness to repay.

With no bank qualifying, the sellers are motivated to move on and be able to settle one issue before moving to the next. The sellers have the ability to lend with any terms that make the deal work. If they are comfortable, they can deed the property and collect monthly payments that are typical to conventional financing. In no bank qualifying, the sellers may opt to use a land contract to test the waters and then covert later. Or they may opt to do a rent to own and use no bank qualifying until the buyers credit dings can be healed. Down Payments, monthly payments, terms and conditions are all negotiable under no bank qualifying.

Creative no bank qualifying

Another specialized no bank qualifying financing is by buying a property “subject to.” For those not familiar with “buying subject to” for no bank qualifying is whereby the seller of a property will agree to deed the property over and retain the existing mortgage, that is paid by, but not obligated by the buyer. In this no bank qualifying situation, I’m sure that I lost a few and others are shaking their heads in disbelief? Let me explain. The number one question is usually why would any seller ever agree to sign over the mortgage to a stranger and keep the loan in his own name? One word sums it up “MOTIVATED.”

In no bank qualifying, why would any seller ever become this motivated? Very easy…life altering events. When the world collapses under you and there is not enough glue to put it together…then you do what you have to do. If…you can make decisions fast enough, then in many cases the scars are not too deep. When you know that you have to make some major changes…and while your credit is still basically intact…then having someone else make your mortgage payment which would protect your credit may be a prudent action to take. A seller with a life altering event knows that either way he will be losing his property and takes the path of least resistance. No credit checks…Click Here!

No bank qualifying with buying subject to

With the high rate of foreclosures and a composite of motivated sellers, not every property is a good subject to purchase. With no bank qualifying the object is to get a property by an assignment of deed…but not with a lot of excess baggage and liability. With no bank qualifying, the purchase should not be much different than with conventional lending, whereby the property should have some equity or at worst case maybe little to no equity. If there is no equity, it should at least be in an area that will recognize some reasonable appreciation in the not to distant future. Even though there is no bank qualifying does not mean that it should not appreciate in value. Zero down.   Click Here!
The intent is to keep and recognize increased value during ownership and  be able to sell and or re-assign for some gain. In no bank qualifying the bank approval process is eliminated but the appreciation and profit areas remain a driving force.

In seeking out a no bank qualifying subject to purchase there are sellers that have not had a life altering event, but have become motivated by other circumstances, such as having two properties and two mortgages with only one being occupied.  These situations tend to dry up the savings accounts very rapidly, which becomes a strong motivator.

In situations as these, there is often additional incentive by actually receiving money in addition to the deed transfer. Now hold here…say it aint so? That really sounds like a sly move to get a seller to pay a buyer to take his property? Under no bank qualifying with a subject to purchase, the seller is cognizant of what this will cost if it remains unsold for another 6-12 months including a real estate commission. So…a bird in the hand…is

The seller concedes that it’s going to cost him “X” dollars say for the next 6 months, so why not “bite the bullet” now knowing that one way or another the money is gone, so it is given to the buyer now along with the deed and the seller knows that he is “rid of the property” and no more monies or worries of the unknown and life can resume. When looking for property for sale with sellers, pay attention to the term, OWC, owner will carry… the owner will carry or hold some financing. Financing without asking.

Another no bank qualifying prelude to the above maybe consideration to a possible rent to own whereby a future buyer may “ramp up” to a sale later by establishing rent history, credit repair and employment stability. This gives both parties a chance to “kick the tires” and see if there is a good fit for a future sale. These are a few common types on no bank qualifying financing scenarios that could be used and adapted to most any real estate transaction that involve no bank qualifying. Financing Secrets  Click Here!

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