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Owner Financing Success Stories
WHAT IS OWNER FINANCING?
Owner financing also called seller financing is a tool you can use to purchase real estate when you otherwise can’t obtain a traditional mortgage. There are different ways to buy a home without needing to qualify through a bank. With a traditional mortgage, you borrow money from a bank to pay for the property. Then, you make payments back to the bank to pay off the loan. With owner financing, you make arrangements to pay the owner in installments, typically of principal and interest, until you’ve paid off the purchase price of the property.
For example, if you buy a house from a seller and the seller agrees that you can pay $800 per month over 30 years, this would be owner financing, also called seller financing.
Throughout the country, owner financing goes by many names. You may hear it referred to by any of the following terms:
Owner Financing Benefits for Buyers:
HOW IT WORKS?
TYPICAL SELLER FINANCING TERMS
Each seller has a different mindset of what they want to get out of their business, and when they need the cash for the sale of that business. However, there are some commonly accepted terms that can be a good thumb in the air when looking to negotiate seller financing. Terms for seller financing will commonly include: