For those wanting to purchase a home but are struggling to obtain a traditional loan from a bank, owner financing could be a viable option. Also referred to as seller financing, buying owner financed real estate is often a great alternative to traditional mortgages and lending. Within owner financing, you can purchase both owner financed land and homes. Seller financed homes is quite clear cut, as the seller of the home is simply taking the place of a loaner or bank.
Here at TruVest, we’re well versed in owner financing, and we can provide you with the information necessary in safely going about making the right decision for you and your family.
Key Considerations for Buyers
As with any type of investing or purchasing of real estate, buyers always need to do their research. In purchasing a home through owner financing, you should take into account a few important pieces. First, interest is often higher for owner financing. Though it’s an option for buyers who can’t obtain a traditional loan, you’ll still need approval from the seller. Also, most sellers will require a balloon payment and you’ll need to have the finances secured to pay when it comes time. If not, you may lose the money you’ve paid.
Of course, there are also a number of potential advantages in buying a home through owner financing. Take a look at the list below:
- Closing costs are often lower for the buyer, as you can avoid appraisal costs and bank fees.
- While there may be some negotiation required, the down payment can often be lower. At the least, it’s typically more flexible.
- The entire process of owner financing is much quicker, including closing.
Call Us for Help Today!
If owner financing seems like a viable option for you, be sure to contact us today. We can help you determine what’s right for you and give you the information necessary to make a smart buy. For help, give us a call at (833) 878-8378.