Own a house without using the Bank

Alabama Affordable Housing - Decatur, Huntsville, Athens, and surrounding areas

You want to own a home so bad however something is stopping you. BAD CREDIT. Yes, this is a huge stumbling block if you are going to approach a bank. So what do you do? One great way to get into a home is to find properties for sale that offer OWNER FINANCING. Why is this a great way?


  1. IT IS VERY EASY TO QUALIFY. Generally the “lender” (the seller) looks for a good down payment (skin in the game) and the ability to pay. Bad credit is not a factor. The buyer, generally will purchase the property on a contract for deed (also known as installment land contract) which doesn’t require the traditional bank income and credit approval. This is perfect for those who own a business. It is hard to verify income since there is no W-2 from business owners. Even if say you do qualify with a bad credit rating, you will be charged more on interest and more on the down payment.
  2. FAST CLOSING. This can be done within in days of signing the agreement since there is no third party financing involved, the bank.
  3. IMPROVE YOUR CREDIT RATING. This is the opportunity to improve on your credit rating. Keep paying on time so that if you decide to go with a bank this will be easy to do.
  4. NO CLOSING/LOAN COSTS. Generally the closing costs will be very minimal and is a negotiable item who pays these however the LOAN COSTS is ZERO. No more loan origination fees, points, appraisal report and other JUNK FEES the banks require. That alone saves you the buyer a ton of money.

I do want to touch a little bit more on the DOWN PAYMENT. EVERY seller/investor will be different as to what amount is needed to make the seller/investor feel comfortable doing owner financing with you. Think about it, you are asking someone to TRUST you that you are a deserving home owner who is SERIOUS about buying the house for sale. They want to see how serious you are truly. One good way is to put down what the seller/investor is asking for. Ok I hear you, you don’t have all the money. I get it. WHAT DO YOU DO?  TIP…. Work with the seller/investor. Discuss all options. Who knows they might lower the down payment. Maybe you can work out a sweat equity/money combo (depending on the property). Maybe a payment plan. There are MANY ways to make this happen. YOU just need to want it. So, IF you really want to own a home, have a good enough down payment to secure that house. Show the “lender” you will have enough skin in the game that it will be difficult for you to just walk away from the home.

Alabama Affordable Housing program is a program that encourages HOME OWNERSHIP. This involves doing owner financing for qualified participants. They have 2 requirements: 1. You must have the ability to pay the mortgage, 2. You must show you are serious by having a good down payment.

At this time AAH only operates in North Alabama. This is changing rapidly. If you want to know more about the Alabama Affordable Housing program go to www.alabamaaffordablehousing.com. Do sign up for the program. Be a home owner through this program and owner financing.

Buy a home through this creative financing tool, Owner financing.


About the author

John Morey is an investor in Northern Alabama who does flips, buy and holds, owner financing and notes. He invests with other investors in Northern Alabama. He started the Alabama Affordable Housing program late July 2017. He saw a need that could change neighborhoods and that is to provide affordable housing in low income areas to raise the quality of the neighborhood by having more home owners. He is also the manager of JP REAL ESTATE GROUP LLC. www.jpregroup.com  256.469.3099  jprealestate2014@yahoo.com