Using Owner Financing to Buy Real Estate - No Mortgage Necessary
Are you trying to sell your house without the desired results? Are you trying to buy a house but having difficulty with financing? If so this is probably the article for you. Why you might ask? Whether you are a buyer or a seller, owner financing could be the answer to your problem.
The increasingly-popular trend known as owner financing is when the owner, or seller, of the home finances all or part of the purchase of their house. Instead of paying a bank or mortgage, the buyer makes regular monthly payments to the seller. To some this process may sound a little weird when it's put in those terms. How about land contract or lease purchase agreements? Those are probably familiar to most people. Land contract and lease purchase agreements are more well-known types of owner financing.
What are the benefits to the buyer? Some, such as limited to non-existent qualification requirements are obvious. The approval decision is left to the seller and not to a bank or mortgage company with strict requirements. Others such as negotiable down payment and low closing costs are added benefits. Also, financing can be adjusted to the buyer's specific needs. Interest rates may also be lower or in some cases even non-existent. In the short and the long run owner financing can save the buyer hundreds of dollars and a lot of time and hassle.
What about the seller? Owner financing typically increases the number of interested buyers. The seller's monthly income is increased from the regularly scheduled payments. In addition to those benefits, the seller will probably pay fewer taxes for the additional monthly income than what would be required for a large sale.
So why not use owner financing? There are many benefits and no foreseeable problems. The buyer and the seller both benefit greatly from owner financing.
Many real estate investors know how to buy houses with Owner Financing. If you are interested in learning about buying, selling or renting properties using these creative strategies then check out these free resources for Real Estate Investing.
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