Sell House On AFD, Buyer Refi Out Quickly?
Trying to go ahead and get the down payment out of a buyer and sell the house on Agreement for Deed. The idea is to lock in their position until they can lower their utilization and DTI and refinance to cash me out. They have $$$, just need a couple of months to get their scores up. Would this be considered a refinance if only a few months payments have been made (I guess a non-seasoned refinance)?
Does anyone have any other ideas on how to lock the buyer in with a large down payment to get them into the house while working with them on their credit?
JohnCl
You could move it through a Trust to keep the bank away from the Due on Sale clause. (Garnes-St. Germaine Act of 1982)
Thanks for the comments. I will ask about those rates. Maybe cause its at a 100% CLTV with the seller second. I wonder if it would make sense to do a 100% on this right out of the gate. Maybe a 5 yr arm and do a cash-out refi with no seasoning and still get a decent rate.
Nate-WI