Simultaneous Closing Instruction Page

(Seller Financing Transactions)

Only Single Family Homes

Please do not call about Simultaneous closings on Land, Lots, Commercial Property or Mobile homes!

(80-10-10 Depending on Credit)

If You are a HOME OWNER SELLING YOUR HOME and want to sell your property or if you are a buyer with blemished credit or a lot of debt (high debt ratio) who have some down payment and a willing seller who will owner finance or seller finance to you, you have come to the right place. 

This page is designed to teach you sellers a new way of selling their property fast and buyers a way to buy a home without depending on stringent bank or lending institution guidelines that turn so many buyers away. 

A seller selling their home with owner financing is effectively setting him/herself apart from the rest of the seller's market. 

Seller financing or owner financing entails the home seller holding the note or providing financing for the property to the buyers.  Simultaneous closings on real estate purchases refers to the creation of a seller financed note and its simultaneous transfer of ownership to another entity.

When a seller or owner finances a property they often get higher rate of return on their money.  However many sellers don't like the idea of having to collect payments and deal with the possibility of late payments, default or foreclosure in the future.  If that is the situation and you are a seller who just simply want your cash at closing or a few days after (2-7 days is the norm) then this system is for you. 

Seller financing is for prospects whose credit might not be perfect or who don't want to have their finances inspected by the bank or a lender or whose high debt ratios will not let them qualify for a bank loan.  To those buyers a seller who offers seller financing is the only way for them to own a property. 

For note brokers and investors there is a better alternative to this way of closing a deal due to the large amount of discount that the seller of note normally takes in order to close the sale of a home.  You can read about it here.

Most buyers with good credit have a wide selection of homes to pick from.  Often they choose a newer or new home.  The rest of the buyers (The A- to C- type credit) deserve to own a home too.  By having a home seller offer seller financing to this segment of buyers they effectively make it possible for a large pool of buyers that can now own a home and re-establish their credit. 

The good thing about it is that a seller can now sell a home to a buyer with credit from A- to C- and get your cash at closing. 

Here is a sample scenario that can provide the seller with the cash they need and a buyer with the home they so desperate want. 

Seller Financed Note Scenario 1.  Buyer with credit score above 650 or "B" credit: 

• $100,000. Sales Price
• $ -10,000. Down Payment (5%)
• $ -10,000 Second lien held by seller
• $  80,000. New 1st position lien, 30 year term, 10 year balloon, 9.25% interest rate.
   

We can purchase the first position note at closing for .80-.90 cents on the dollar depending on credit.

Buyers normally have a chance to refinance at a lower interest rate if they make their payments as agreed for at least one year.  This type of transaction can thus be a solid win-win situation.

Featured Program - Seller Financing Simultaneous Closing 

• Single Family and 1-4 unit single family homes, Condo’s, Townhouse only!!! 
• Owner Occupied and Non-Owner Occupied allowed at same rates. 
• No Mobile Homes, No Row Homes, No COOP's, No ground lease, no Land-Only or commercial.
• First monthly payment will be due and payable one month from closing.  We might close before the first payment is made.

1. $1600.00 minimum monthly income

2. Maximum 50% Debt Ratio

3. Bankruptcy/Foreclosure over 2 years old

4. Credit Scores start at 650 ( score is arrived by taking the mid score) Can increase score with cosigner, it also adds to the income total when a cosigner is used.

5. Note and Mortgage or Contract for deeds Accepted

6. Interest rate and LTV's can be determined by Seller but will affect the discount amount.

7. Minimum note purchase: $50,000, Maximum: $500,000. (Higher on a case-by-case basis)

9. Self-Employed need last 2-years tax returns.

10. Gift Funds or Down Payment Assistance Program Not Allowed.

11. No Bank Balance needed. Just an open account at any institution. Savings account or Brokerage account allowable.

12. Closing on the home will be required FIRST, then we will close on the note after all closing documents are signed at the title company.

1. Our Quote Amount subject to complete and approved documentation.

2. True and corrected signed 1003 Residential Loan Application.  You can have your buyer complete one at our lending site at www.flexcreditmortgage.com.  

3. An Original Appraisal; Full appraisal FNMA 2055 with 4-5 interior photos provided by a State Certified Appraiser less than 30 days old. We will order our own appraisal after we enter in the agreement to buy the note.

4. A paid Hazard Insurance Policy due at closing naming Seller as loss payee.

5. Title Commitment naming the seller as proposed Mortgagee insured. Insured amount must be for an amount equal to the 1st lien or greater.

6. All documents: Bank Statements, Credit Report, etc. must be updated thirty days prior of the day of closing.

7. Under 650 credit score (We might look at a deal with 620) requires 12 months cancelled checks or money orders to verify rent.

8. Monthly income must be a minimum of $1,600 and create a 50% Debt to Income.

9. Special Assessments: All unpaid assessments must be paid in full prior to or at closing.

10. Title Company or their Appointed Attorney shall prepare all mortgage and note documents for first and/or second liens.

11. Copy of buyer's Photo ID and Social Security Card or W9.

12. On credit scores below 650, Buyer's last 2 pay-stubs and Bank Statements for last 2 months, last 2 years W2's or if self employed, the last 2 years of tax returns.

13. The Purchaser reserves the right to terminate The offer to Purchase prior to the settlement of the loan in the event of an adverse change in your personal or financial status, or the improvements on the property are damaged by fire or other casualty.

14. All Properties will require a second appraisal at our cost.