Are you looking to buy a new home, you have great income but you don’t qualify for a traditional mortgage? You have a great job and a nice down payment but the banks don’t want to work with you? Let me tell you a little bit about Owner or Seller Financing!
With seller financing the owner of the home can sell it to you and act as the bank. Banks have strict guidelines and rules they MUST follow in order to provide mortgages to their customers. The home owner can sell their home to whomever they want and they can act as the bank providing the loan to you. Your down payment acts as the security. So your probably going to be asked by the seller for more down then a typical FHA loan is going to require. Most sellers ask for at least 20% down.
15 Seller Financed Homes Currently Available
The seller is probably not going to want to hold the loan for you for 30 years like a traditional bank, most seller financing deals I have helped my buyers get have had a 3 to 7 year balloon payment due. This means that the seller has a set amount of time to either pay off the loan or refinance it into a traditional loan. I like to have my clients talk to a lender to find out what its going to take to get a traditional loan so we know how long they need to do a refinance down the road.
