The key to owner financing is flexibility, you can offer terms that are creative and different.
Fast Home Sale – Lake Worth TX: The more you can do to help your buyers to purchase your home, the more chance you have to sell it in reasonable time. If you need to move for some reason and don’t want to wait too long for a traditional sale, consider offering owner financing as an option. You’ll only want to offer this option to qualified buyers, of course, but it could give you some flexibility and relieve you of the house you are no longer going to live in.
If you have your home paid off you are in a good position to offer owner financing. The worst case scenario is that the buyer ends up defaulting on the loan, moves out, and you sell it again. The best case scenario is that you might be able to help a family to buy a home that they might not otherwise have the down payment for right away or that don’t qualify for the much more stringent bank loan criteria of today’s mortgage lenders.
“Contact an attorney to help you with the contract when you find a viable buyer. An attorney will be aware of things that should be included that you may not have thought of. “
The key to owner financing is flexibility. You can offer terms that are creative and different. The loan can be written for a short time to give the buyer the option of refinancing after he has some of the house paid down and can prove some equity to use as collateral for a future loan. You can use standard loan application documents downloaded from an internet legal document site. You’ll want to ask for employment information and credit and work history to verify that they can afford the payments. It will also give you an idea of how reliable and responsible the family is. Be sure to call or contact the resources shown on the application. Call the current employer, some references, and do a credit check.
Contact an attorney to help you with the contract when you find a viable buyer. An attorney will be aware of things that should be included that you may not have thought of. You’ll need to include the requirement that the buyer keep insurance on the property to protect your investment should something go wrong. You can also require the buyer to buy private mortgage insurance (PMI) in case there’s a problem with repaying the loan. The buyer should pay all property taxes from the time of the contract. Offering owner financing is one additional way for you to offer something more to home buyers, making it more likely that you will sell your house.
Filed under: House Selling