Tuesday, June 9, 2015
What's Stopping You? 3 Reasons Buyers Have Trouble Saving For A Downpayment
What's preventing you from buying your first property? A recent study found that most people defer their long term goals, including purchasing their first home, due to outstanding debt. What are the biggest culprits?
1. Credit Card Debt: 50% of us sweat the billing statement each month, knowing the outstanding balance grew despite making more than the minimum payment.
2. Student Loans: 46% of us are strapped into unholy agreements with Sallie Mae, Navient, etc., for loans WHICH WILL NEVER GO AWAY!!!!!!
3. Car Payments: 38% of us have a car loan.
I was stuck with "all the above" when my partner and I looked for our first place 23 years ago. My debt to income ratios were so high (which disqualified us for traditional financing) we decided to search for someone willing to sell with seller financing instead of traditional bank financing. The plan worked!
We purchased our first home with seller financing, a side by side duplex, and a couple years later we refinanced into traditional bank financing using the rental income to qualify for the loan.
That's how we got our start.