What’s the catch for me the buyer with trying to go for 0% down seller financing?

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if you wanna buy a house for $100 and you put $20 down, i lend you $80. you have 30 months to pay me back. that’s $2.60 a month.

same scenario except you put $0 down. now you owe me $3.30 each month.

scale this up to the hundreds of thousands and also add in an interest rate, and you can see why higher down payments result in lower monthly payments.

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yeah i was tryna keep it simple

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I’m not trying to be rude but you’re trying to buy a house without understanding what a down payment does to your payments?

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your monthly payment will be hella

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Can you explain why? In simple terms :) ^

Like what are the benefits if it’s just screwing you with high payments?

I’m considering selling one of my vacation houses on a river, 12 acres, timber frame cabin 700sqft. I’m considering selling it owner financing, but at least 10% down around $1800 a month 350k 6.5% interest. 0 down is gonna be a no. With laws not in my favor, slow foreclosure process, I stand to lose 1-2 years in payments, plus 5-10k in attorney fees if you default, repairs to resell, it could easily cost 30-50k in a flat market if you default. 10% down is like break even territory to mitigate the risk. Outside of your family most people wouldn’t go for it and I’ve done 3 seller financing deals. All were 20% down, higher than going rate interest, balloon payment in a few years. I like buying seller financing because I can usually pay them off in a couple years on 200-300k off market fixers.

If you’re a first time home owner you can get a program that’s 0% down with no PMI. We bought a $1.1M home in nyc with nothing down through the NACA program and it’s been great!

Are you trying to propose seller financing? Or is the seller proposing it?

I can’t imagine any seller would agree to 0% down seller financing.

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