Why Can't Your Buyer Get a Mortgage?

Listing brokers love to ask this question whenever they are asked about their seller's willingness to provide owner financing. It seems that in today's era of super-low interest rates that somehow everyone should be able to get better financing than what I might offer on behalf of my buyer. So why don't those buyers just get a mortgage?

How hard is it for a buyer to qualify for a mortgage today?

Here are some of the reasons a buyer with a good income and/or assets might be looking for short-term seller financing (and the time frame they may need to qualify for a mortgage):

· Currently past due on payments, need to bring all accounts current and pay on time for 6 to 12 months.
· After a bankruptcy is discharged, need to re-establish an up-to-date payment history and pay on time for 2 to 4 years
· After a foreclosure or short sale, need to re-establish an up-to-date payment history and pay on time for 2 to 4 years

Or perhaps the buyer is a real estate investor - like me! - with excellent credit, but for whom short-term bank financing just doesn't make sense. I plan to renovate and re-sell that property in less than a year.

So, good question. But please, dear Listing Broker, do not dismiss a purchase offer simply because my buyer is asking for seller financing.