When Sonoma County Sellers consider various ways to sell their house, one thing that should be considered is the carrying back of paper in order to make the deal work. It may sound funny for a Mortgage lender to talk about seller carry backs but it is a really useful tool.
I am not talking about the whole first but say you had a 300,000 dollar house to sell. The buyer can scrape together 35,000. The buyer is looking at a 90% first which carries with it PMI and a higher interest rate that maybe they can’t qualify for. Yes they could look at FHA finaincing but the problem still exists…high debt to income ratios.
The soloution would be for the seller to carry a 10% second, interst only, at a prevailing interest rate for 5 years. It solves the probelm of the high mortgage payment and the Private Mortage insurance. Think about it. It just might save your deal!
