Home Sellers Step In Where Banks Fear to Tread

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Beautiful homes at rock bottom prices are a dime a dozen in today's real estate market. The only problem is you can't get a bank to lend you the dime to buy them.

When brothers Jeff and Larry Zinkin decided in May to list the Green Valley, Calif., home that they owe free and clear (pictured above), they encountered the problem head on. Buyers liked the house they had listed at $995,000 but couldn't qualify for mortgage.

Stringent loan standards that define just how much of your income should be spent on housing, coupled with damaged credit scores because of recessionary hardship, have decimated the pool of potential buyers who can get a mortgage loan. The result is that even if a seller finds a buyer to make an offer on the house, unless the buyer is paying cash, the deal may not close anyway. Many prospective buyers have good jobs and savings. What they don't have is the creditworthiness in the eyes of the lender.

seller carry mortgage The Zinkins bought their 3,295-square-foot single-story home in 2001 and listed it for sale after buying a 100-year-old farmhouse in the neighborhood that they've always had their eye on. To hasten the sale of their first home, they have advertised that owner financing is available to qualified buyers.

Jeff Zinkin (pictured at left) said that he isn't worried in the slightest that his buyer will turn out to be a deadbeat.

"We will do our due diligence and vet the person we loan money to," he said. He's offering his financing deal at the going bank rate and will insist on a minimum of a 20 percent down payment.

"It's too hard to get a loan. I think a lot of good people got into credit trouble in the recession," he said.

"This works for us. It will give us a regular steady income and it will work for a buyer too."

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The three-bedroom home sits on five acres and is adjacent to 330 acres of dedicated Solano Land Trust, so it won't be developed. It has a detached 1,440-square-foot guesthouse and a pool.

Click on the images below to tour other high-end listings where the owners have offered to carry the mortgage:

owner financingowner financingowner financing

See other homes for sale in the Green Valley, Calif., area on AOL Real Estate.

Also see:

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
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