Owner Financing

Owner Financing is a win/win real estate strategy that allows an owner to provide a home buyer financing for an agreed upon period of time until a conventional loan is obtained. This is a legal transaction that provides benefits to both the seller and buyer.

There are many benefits and reasons for a buyer to consider an owner financed home:
1) Qualification Process – The lending requirements have made it more difficult for individuals who are self-employed to obtain a conventional loan. A buyer may have poor credit due to a recent divorce or even bankruptcy, however has the means to pay a mortgage payment.
When a buyer takes advantage of an owner financed home, the

2) Credit Rating – As a buyer makes timely monthly mortgage payments on an owner financed home, there is an opportunity to improve their credit rating.

3) Costs – there are many costs associated with a conventional loan such as an origination fee, points, underwriting charges, appraisals, etc. that are not typical in an owner financed real estate transaction.

4) Fast Closing – An owner financed real estate transaction can move quickly and allows a buyer to purchase and move into a home in a shorter period of time than waiting for a lender to complete the conventional loan process.