is it hard to refinance a property bought by owner financing?

i am thinking about purchasing a home through owner financing and the owner wants me to refi after 2 yrs. But I do not know if it will be hard to get my loan refinanced by lenders or not.
In Buying Property - Asked by Rachel B. - May 26, 2009
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Paul S.
Broker/Agent
Glendora, CA

If it is a single family home, that will be your primary residence you have the best chance. There are a number of factors you should consider. How much are you putting down? If it is very little there is a good chance in 2 years you will owe more than the property is worth. Would you qualify with a lender today? If you can't then you probably won't be able to in 2 years because thus far lending guidelines are tougher not easier. Remember that "easy" lending parctices earlier this decade are what got the country in the mess it is in today. Is the seller asking more than what the property is worth today and thereby fears an appraisal? If it won't appraise today it probably won't in 2 years. Even if it does appraise today it may not in 6 months. Why use owner financing when you can get 5% for 30 years through a lender? If you can't now you probably can't in 2 years An what happens in 2 years when you need to refinance if the interest rate is 8% because of reckless spending by the government and resulting inflation? Do you remember when home loans were at 18% because of inflation? Seems like having a 2 year due date is like playing Russian Roulette with all the chambers loaded but one? Obviously there may be a good reason to do it. Just keep your eyes open and remember all those loaded cylinders. Also remember that your ability to get a loan in 2 years is contingent on factors that you have no control over.

May 27, 2009
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