What Are The Advantages of Owner Financing on Land For Sale?by Owner Financed Land The Owner Terms Land Network
Traditionally, when someone buys real estate in the US or in other places, the customers will go through a third-party lender. It could be a big bank such or a local Credit Union. A person or family will then take out a loan from this lender, for the price the seller is asking for the property. That loan is what we call a mortgage.
What is Owner Financing?
However, owner financing is a unique but different concept. Owner Financing land, sometimes also called seller financing, is when the seller of a home, land or some other form of real estate, keeps the mortgage under their name and is paid by the buyer in monthly installments until the seller's asking price is paid off.
Advantages of Owner Financing:
There are many different advantages of owner financing when it comes to lands for sale. Probably the best thing that owner-financing has to offer is it's a fast and easy way for someone to move into a home or purchase some property.
With a tradition mortgage through a bank, if you want to get that mortgage, you must qualify. So you must provide information about your income, your credit history, sometimes a background check mud be done. Then you must have an adequate down payment or the bank won't even give you the loan. Once you've met all those requirements, you can then buy the property but you will also have to ad closing costs on top of that down payment and the loan itself. It ends up being a very costly affair just getting into a home or on some land.
Generally speaking and depending on the owner/seller you go with, owner financing side-steps all those extra costs. There is usually no credit check, no or a small down payment is required and there are no closing costs. You just agree to buy the property, and you start paying, simple as that. You must always do your due diligence on both the property and the owner but it is definitely a quicker and simpler process than going through a traditional third-party lender.
Created on Jan 31st 2018 06:03. Viewed 118 times.