Lecture Notes: Buying a House Through Owner Financing by Wayne Turner

Introduction

• Life challenges like divorce, job loss, and medical bills can impact credit.
• Wayne Turner discusses a method to buy a house without traditional credit or job history checks.
• Emphasis on owner financing as a solution.

What is Owner Financing?

• Buying property directly from the homeowner.
• No involvement of banks, credit unions, or mortgage companies.
• Legal and recorded transactions.
• Buyer gives a down payment and makes monthly payments like a traditional mortgage.
• Interest rates typically 1.25% to 1.5% above the current rate.
• Opportunity to refinance later.

Advantages of Owner Financing

• No credit check, job history check, or PMI (Private Mortgage Insurance).
• Saves hundreds of dollars monthly by avoiding PMI.
• Quick closing process, often within two weeks.

Requirements for Owner Financing

• Must have 10% down payment in cash.
• Additional cost for attorney fees ($400-$500 for closing).
• Need a title policy to protect against any liens or encumbrances.

The Buying Process

• Homes often vacant, owned by people who no longer want to manage rental properties.
• Inspect homes before purchase; negotiate repairs with sellers.
• Option to purchase a home warranty for major appliances and systems.

Refinancing and Long-Term Considerations

• After 2-3 years, opportunity to refinance to a lower rate.
• Mortgages typically amortized over 30 years.
• Some contracts may require refinancing after a few years.

Selling the Property

• Can sell the property before refinancing if needed (job transfer, etc.).
• Responsible for paying the seller what was agreed upon; remaining proceeds are yours.

How Wayne Turner Can Help

• Real estate agents disclose owner financing options in MLS.
• Wayne's team can assist in finding and purchasing such properties.
• Provides guidance on flood zones, surveys, and encroachments.

Conclusion

• Wayne Turner offers to help those interested in owner financing method.
• Encourages viewers to subscribe to his channel for more information on real estate purchasing.

Contact Information

• Visit WayneTurner.com to learn more or initiate property search.
• Wayne Turner, nearly 30 years of real estate experience.