NATIONAL NOTE BUYERS exists to help and inform all who need to know about mortgage notes and trust deeds, both residential and commercial.  We help individuals or companies create, sell, understand notes.  We are investors and do not lend money but purchase cash flows. We are determined not only to make great deals on  mortgages and trust deed notes which you are selling or buying, but strive to be a good neighbor. We shape our business decisions to improve the quality of life in the communities where we do business.

BUYERS WANTING HOMES

Welcome to our  Buyers Wanting Homes section - - - -

So you want to buy a new home!

Whether you are: 

• A first time buyer

• Looking to upgrade to another home that better fits your lifestyle 

• Are now renting and hoping to be able to get a home for your family. 

• Someone who is renting, and has good credit but can't get a conventional loan

• Someone with credit less than perfect

National Notebuyers may be able to structure a seller held mortgage note for you.

First you need to find a house where the seller will be able to take back a mortgage note.  See the section for sale by owner.

There are many advantages for both BUYERS AND SELLERS

• No red tape

• No points to pay

• No conventional loan requirements to meet.

• No certain down payment to come up with

• No meeting Federal Guidelines.

• No closing delays

• No bank fees or application fees

• No piles of paper to process before closing

• No questions regarding stated income – assets –stated reserves

• No requirements for tax returns

• No bank statements

• No W2’s

• No escrow accounts

• No termite inspection reports

• Seller financing helps people get the funding they need to buy your house.

• Sellers are happy to have sold their house.

• Quicker closings (days rather than months)

• Less expensive closings - quicker sale

• Flexible down payments

• Flexible terms

• Easy qualifying

At the closing, when a seller takes back a mortgage note there sometimes is a simultaneous closing which takes place, because the seller wants to get his cash out of the sale..  

Anyone can use a simultaneous closing, however, this works best for people who:

• Can’t qualify for conventional mortgages

• Have less than perfect credit

• Where the house’s value is higher than the appraised value

• When the house has been listed for many months and has not yet been sold

• Works terrifically for people who have high equity in their homes

• Works for anyone who no longer have a mortgage on a property

• Works for anyone who is in a rush to sell his or her home to relocate and need the cash now…

Together both the buyer and the seller get together and agree upon certain terms that both parties can live with and meet without any serious complications.  Before creating a note all parties agree on the terms of sale, purchase price, interest rate, and amortization.

Once a buyer finds a seller who decides he wants to use a seller-carry-back note:

A. The following needs to be known:

• What is the motivation of the seller to take a discount?

• Why does he/she want to sell?

• Why? Why? Why?

 

 

Once it can be established that we would be working with a motivated seller,( not a time waster) we can proceed.

B. The following also need to be known:

• What is the sales price?

• What is owed by the seller on the existing mortgage?

 

If the seller has less than 25% equity in the property based on the proposed sale price, the deal is unworkable.

• When it is known that there is equity, the we need to:

• Look at the credit and qualifications of the buyers(s).

• Have the buyer(s) fill out and sign a standard mortgage application. (Like Fannie Mae) Go to the forms section or choose 1003 Residential Loan Application

• We should look at the qualifications of buyer. The monthly payment of principal, interest, taxes and insurance (PITI) should not exceed approximately 28% of the gross monthly income of the payer(s). And once recurring monthly debt (Visa, Sears, school loans etc.) is deducted from the monthly income, not more than approximately 36% of that number should be used for PITI. If the buyer is qualified continue. If the buyer is substantially unqualified to make the purchase, stop now.

If qualified we need to:

• Know how much cash the buyer has available for a down payment.

• What is their comfort level of a total monthly payment (PITI)

• Deduct the approximate cost of taxes and insurance because it is only the principal and interest portion we are interested in now.

• Now is the time to begin working on the potential note.

• Use the P & I from the buyer.

• Use an appropriate term, 15 to 30 years.

• Use an interest rate a point or two above the current hard money lenders (ex. 9.5% to 10.5% for residential and 11.5% to 12.5% for commercial. Insert these numbers into a financial calculator and solve for PV which is the approximate amount of the loan the seller will have to make to the buyer.

 If this is too confusing and who have found a home who's seller is willing to take back a mortgage note and you Have Questions?

Call us at 413-592-3381, send us an email at richard@maxicash.com or request a phone call from us.

and we will try to structure the mortgage note for you and your seller.

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Webmaster @ maxicash.com  Owned and Operated by F L Alix Copyright © 2000- 2005  [National Notebuyers & Hard Money Programs]. Phone: 413-592-3381   Fax: 413-594-5516 All rights reserved. Revised: April 04, 2008 .