Let’s put it this way, you saw a property that you love. Your next step will be, how to acquire that property? As a home buyer, you would go and ask about a lot of things regarding that property as you consider many aspects before you will finally come up with the decision. After all, acquiring a home is one of the largest investment that one will ever make.
Then, as you gather information on how to acquire that property, you came about hearing the term, “Owner Financing”. You will have questions in mind that you have to learn more about it. Let’s guide you in this article about the basics of Owner Financing.
Now, Owner Financing or what is also known as Seller Financing is basically when you – the homebuyer – finance the purchase of that certain property directly through the seller. In most cases, financing happens through a mortgage lender or bank.
Your question now will be, why should I choose owner financing as opposed to the conventional mortgage lender or bank financing?
Owner Financing is an easy way to finance the home that you really love. The arrangement of this type of financing is the seller or homeowner will give enough credit to the home buyer to cover the purchase price of the property and less the downpayment that’s handed over by the home buyer.
There will be proper documentation with the terms of the loan, which covers interest rate and repayment schedule. Documentation is usually in the form of a promissory note. In this case, the homeowner keeps the title of the property until the home buyer pays in full.
It is indeed a guaranteed faster transaction. As opposed to the mortgage lender and bank financing, Owner Financing is way cheaper. You get rid of the bank fees and appraisal costs.
Moreover, homeowners or sellers get the most out of this way of financing. As for the sellers, you can sell the property without doing the costly remodeling. Home renovations one of the traditional lenders’ requirements.
WHAT MORE ARE YOU WAITING FOR? Let’s choose Owner Financing in our next property investment!
If you want to learn more about Owner Financing, we have an upcoming 713 REIA’s Massive Monthly Meetup with Scott Horne! Check out more here https://bit.ly/2Jg1owH