When you visit one of our qualified real estate consultants you will be asked an array of questions designed specifically to better understand your situation. Once we have the basic picture, we will go over creative financing in great detail including all of the pros and cons before advising what options are best for you.
We will then walk you through the entire home buying process including what to expect and how to structure your offer. If time is of the essence, you’ll be happy to know that in most cases you can close any property within 7 days. 100’s of Homes to choose from – Search Homes Now (fix this link)
Bad Credit, No Credit, Self-Employed, No Problem!
These programs were designed just for you. As long as you have a down payment, you are approved. Premiere Team Real Estate Agents have over 26+ years experience handling all types of creative financing including contracts for deeds, mortgage wraps, subject to’s, lease purchases, rent to own, lease options, seller financing and owner financing throughout Austin, Cedar Park, Hutto, Leander, Pflugerville, Georgetown & Round Rock, Texas.
Owner Financing or Seller Financing
Owner financing or seller financing is similar to traditional financing except the owner provides the money for the loan. And because the money or equity is already in place, the buyer pays a down payment and monthly payments to the owner direct.
Mortgage Wrap or Subject To Financing
Probably the most common form of creative financing today. It’s similar to owner financing except the owner still has a mortgage and the buyer either takes over the payments or a new loan is created and the buyer pays the original loan and any difference to the owner.
The Down Payment
Generally, the down payment is at least 10% to 20%. The size of the down payment determines the interest rate and payment. The more down payment, the less risk for the owner which may allow for more favorable terms for the buyer.
The Interest Rate
It is common to see an interest rate between 2% to 4% higher than the market rate due to the type of financing. But at least the market rate or the owner’s interest rate.
Because there is No Bank involved, everyone qualifies. Though some sellers want to see at least a credit report, last year’s tax return or verification of income.
The fees generally run between $1,000 to $2,500 depending on the Real Estate Attorney you use and complexity of the transaction. This normally covers everything except for a title policy which is optional though recommended.
It is common to see a balloon payment between 3 to 5 years. This gives the buyer enough time to obtain financing and limits how long the owner has to wait to get all of the money. The buyer also builds equity and is able to show the bank a record of timely payments.
Escrow for Tax and Insurance
Taxes and insurance are normally escrowed to ensure they are being paid on time.
Closing the Sale
A Real Estate Attorney is required to draw up the proper legal documents necessary to complete this type of transaction. Because of this, it is recommended they handle the closing as well. Closing can usually take place within 7 days from contract date.
Third Party Servicing Company
It is recommended to have the buyer pay the monthly payment to a servicing company. This ensures the owner’s mortgage payment, taxes and insurance and any difference owed to the owner gets paid as promised and good records are kept.
Mike Cusimano was born in Maryland and is a proud Veteran. After his honorable discharge from the United States Army, Mike was licensed as a REALTOR® in the State of Texas.
He began his real estate career in 1992 and worked as an Apartment Locator and Leasing Specialist working throughout the Austin Metro area. After completing two years in the “Business”, he transitioned into Residential Sales with Keller Williams Realty where he was named the Northwest Office “Rookie Agent of the Year” in 1994. Shortly there after, he entered into a partnership with another top agent and created The Echelon Team.
The Echelon Team ranked within the Top 5 Teams Nationally from 1995 through 1998. However, after a few prosperous years, the partners decided to end that enterprise and Mike decided to create his own team, and Premiere Team was born.
Mike stayed at Keller Williams Realty with the goal of obtaining his Broker’s License. When he did, he left Keller Williams Realty on good terms and opened his own office, Premiere Team Real Estate.
Mike has been recognized for his many successes over the years and asked to speak and train agents in various cities and for other brokerages throughout Texas. He is a proud member of the Austin Board of Realtors, Williamson County Board of Realtors and Fort Hood Board of Realtors. Mike is also a licensed MCE Trainer and MCE Provider and is always eager to share his wisdom on the attributes of running a successful real estate practice. He continues to help people buy, sell and/ or lease houses throughout the Austin, Cedar Park, Leander, Pflugerville,Round Rock Texas and surrounding areas.
Specialties include: Selling Hard to Sell Homes, Property Management, Real Estate Advertising and Marketing, Real Estate Investing, Creative Financing
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"“I had my house on the market in 2016 for several months by with another Realtor with nothing but a dead end and my house in Scofield Farms was listed well below its true value!
I have known Mike Cusimano and his team for a long time as he helped me with some rental properties many years ago. After meeting with Mike, He and his team suggested repairs/upgrades which I believe was worth the investment as he personally provided suggestions of colors/materials to use and different contractors to complete what we thought was important. He was able to sell my home when the market was not peeking and getting what we wanted. Mike was able to keep the communication going throughout the selling process and he knew without any hesitation that when he received a decent offer he was quick to act on it and was able to negotiate acceptable terms. I would highly recommend Mike and his team to anyone buying or selling. I plan on using Mike when I decide to sell my other property in Pflugerville. A Job well done for his team members and staff that worked behind the seen.” "