Owner financed in Austin,TX?

Question

Im planning to buy an investment property in Austin, TX with owner finance. But I only have below $10k for the down. Do you think it is possible?Im not a US resident.

Thanks.

Answer 1

If the seller is financing, just be sure that you are not over paying. The seller can offer whatever terms they want. If there is an underlying mortgage on the property, how will the payments be made on it? If the seller defaults on the mortgage, your equity is at risk. Be sure you get a title search on the property and that you can be sure that the mortgage(s) are kept current.

If there is a mortgage on the property currently, any transfer of title could invoke a due on sale clause which might cause the mortagee to request payment in full. What will you do if this happens? If you cannot get terms on the purchase, will you be able to secure financing from an institutional lender if the current mortgage is called?

You could be taking on risk you aren't even aware of. Get some counsel from a real estate attorney in your area before you proceed with the closing. You have to protect yourself. No one else is looking out for your interests.

Good luck.