1. The creditworthiness from the mortgagor or home buyer. Many note buyers need to see a middle (of three bureaus) credit rating with a minimum of 620 but higher is better. Be sure you pull all 3 bureaus even if you think they've great credit and keep a copy for the future.
2. The quantity of equity the house (or commercial property for that matter) owner has within the property. In other words the down payment. Also, simply because the appraisal was for more than the purchase price does not mean a lot to them.
3. How many making payments in time the mortgagor makes. The more payments made, the greater valuable the note. You want to be sure you keep very detailed payment records, together with a log and copies of canceled payment checks. Do not let the buyer to pay for cash. If they're insistent, make sure they are get money orders at the mailbox.
4. The interest rate from the note. Remember, you are financing for somebody who either chooses to not or can't get traditional financing so charge reasonably limited over market rates.
5. The size of the word from the note, since many note buyers are buying cash flow.
That's. If you're planning on developing a note through owner financing, you want to do because the following as possible to sell a personal mortgage which are more money. These include, a) Get as large a down payment as possible, b) Hold on as good a credit buyer as possible, c) Set as high mortgage loan as you possibly can and d) Set a payment term which is between 10-20 years, without any real short balloon payment. If I was trying to sell my note, I'd act as hard when i can on these items to increase my asset.