owner financing?

Question

my friend has a condo my credit will not support buying right now so we are lookng into owner finance and the ins and out

Answer 1

the more money you have saved, the more you can use for a down payment, the less your payments will be.

Answer 2

If the friend owns the condo he can sell it to you on any terms you agree to. If he doesn't own it but has a mortgage then beware you could be paying him and him not paying his mortgage or he could borrow more on the condo so you end up paying and never own it.
When would it be transfered into your name so he can't borrow against it? Buy title insurance and get an inspection. Condos are hard because you really have to investigate the association and it's books. They could be in the middle of lawsuits or not have money for needed repairs so you get in and then hit with assessments and raised monthly amounts.
Some people say the fees are low like that is a good thing never thinking it means no reserve so when you need a new roof or something you are hit with thousands in assessments.

Answer 3

I would advise you to look into doing a lease option. Lease the condo with the option to buy at a predetermined time(let's say 3 to 5 yrs) at a predetermined price. Have a certain amount of your lease payment go toward the cost of the condo. Meanwhile you could be getting yourself mortgage ready by geeting your credit together. After 12 months you may be able to use your lease to show you've made payments on time. If yor friend is trying to move and need the money to do so check how much he need and try to come up with that as consideration.

Answer 4

If I could advise your friend, I would recommend that he not do it. He's acting like the bank for you. If the bank doesn't want you, why should HE want you as a creditor ?