What Are The Advantages That Owner Financed Land Has For Both The Sellers And Buyers?by Owner Financed Land The Owner Terms Land Network
Owner financed land refers to the property that is owned by the seller himself and the buyer can directly purchase the property without having to go through any middlemen. There are numerous benefits associated with the buying and selling of property that is owner financed. Below we highlight some of the advantages that are enjoyed by the sellers and the buyers.
Advantages to the buyers:
- There might be cases when a buyer is unable to get a mortgage because they are deemed credit-unworthy because they have just taken another loan recently.
- It is easier to ask for a lower down payment or a flexible raiment scheme, allowing the buyer more freedom when it comes to repaying the mortgage amount.
- Owner financing allows the buyer to save on the processing and transaction fees, thus saving the time required to obtain the clearance certificate from the loan officer.
Advantages to the sellers:
- Sellers stand to benefit from the owner financing of property as they are more likely to get a higher return on the investment because they can charge a higher interest rate than the one offered at the banks. The method of owner financing can be used to sell properties that do not qualify for a traditional mortgage or in order to speed up the sale procedure.
- One can get a steady stream of payment when selling the property via the owner financing route. Given that the payment amount is spread out over the years, the tax that is due on the proceeds from the sale is also spread out, thus making the transaction more profitable.
While one can easily benefit by going through the owner financed route, it is important to inspect the deal with caution and then make a decision. For owner financed land Oregon is quite famous and there are numerous properties that are owner financed. A simple search will help you find these individuals, helping you make the most of the deal.
Created on Dec 7th 2018 06:42. Viewed 243 times.