What is seller/owner financing?

Seller Financing is a loan provided by the seller of a property to the buyer to cover part or all of the sale price.
This is also known as owner financing or owner carry back. This type of financing is used in a variety of situations as a creative financing option, especially in a buyer's market.
For a property that has been on the market for an extended period of time, or when traditional lender guidelines are tightened, like right now, owner financing suddenly becomes very popular.

In this type of financing, the buyer and the seller agree on an interest rate, monthly payment amount, term of the loan and the buyer pays the seller for the seller's equity on an installment basis.

Here, the security instrument is generally recorded in the public records, which protects both parties.

By financing the sale of their property, the seller gets a great investment. It gives him a guaranteed return on whatever the interest rate on the loan is. He can charge a higher interest rate than banks because seller financing often makes the deal attractive to the buyer, especially if the buyer could not qualify for a bank loan. If the buyer fails to make the monthly payments, the seller can reclaim the house and sell it to get his money back.

Benefits to Home Buyers:

Little to no Qualifying

The seller is likely to be a bit more flexible than a typical lending institution. 

Choice of the type of financing

Both parties will agree on the terms of the financing, based on what is beneficial to each one of them.  Things like interest rate, term of the loan can be agreed upon. The down payment is negotiable. An installment payment can be made towards the down payment.
Basically, here the whole contract is negotiable.

Lower closing costs

Since no bank or lender is involved , there are no loan fees or discount points to pay. No origination fees, processing fees etc...which saves money on the buyer closing costs.

Faster possession

With no loan to process here, the buyer can close faster and get possession of the house earlier.

If you are looking for a residential,or commercial property with owner financing, please call 469-831-0839 for a list of these properties.