We saw creative financing in the 1980s'. I bought my home in Long Island and assumed the seller's first mortgage and the seller held a second at 15% (the first was 12% and was considered good).
With the strict Federal regulations on lending institutions (we went from one extreme to the other), it is now hard for buyers to obtain mortgages unless they meet the strict criteria. Also, vacant land and manufactured homes are very difficult to obtain standard bank financing on.
What's the alternative? If the seller is not upside down and can afford to wait, but needs to sell, they will hold the mortgage. If they have an assumable mortgage, a buyer can assume the mortgage and have the seller hold a second. The only problem with this is the interest rate is higher because the seller's risk is greater, especially if the buyer is in second position.
There are other scenarios also, but it looks like this may be another thing coming back from the good old days! How good it is, I am not sure.
The best thing at the present time is to get pre-qualified (it costs nothing at most lending institutions) and see where you stand. If you qualify, why wouldn't you buy now with interest rates at historic lows as well as homes.
We will always keep you posted.
