installment sale contract?

Question

I am looking to buy first home. Credit is a wreck, but found a seller willing to finance payments. House is old a nd needs work will my alternative financing affect my ability to get a home equity loan. What are my options.

Answer 1

It depends much on how much you will owe the person who is selling you the property. If you offer to pay him $100,000, as an example, for this house, and the house is worth $100,000, you have NO equity.

Certainly the seller will record his lien on the property as a means of protecting his collateral. Should you find someone willing to provide you with additional funds, do expect to pay a very premium interest rate due to your credit standing.