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Explain how does owner finance work for the buyer and what i

Posted on: 01st Apr, 2008 02:16 pm
We are interested in purchasing a house. Our credit is not that great and the owner is willing to finance for a year. Do we need to proceed as if we were buying the home with home inspections, can we negociate the price that is listed. The house needs some updating, and appliances. Should this be handled by an agent? It's a bit confusing. I would appreciate any response.
Thanks,
some owner will finance the sale of their property for a short period of time. typically the only people that go with owner financing are those that are credit challenged. be carefull of teh interest rate, it usually higher than the going rate. back to your question...yes, continue down the same path, inspections, negotiate price. etc. i don't know if the seller will pay the realtor fee so you need to check with the seller. one thing you will need to do, is clean up your credit quick. if the owner will only finance for 1 yr, that means you will have to refinance at or before the end of the first year. also, keep in mind when you refinance, there will be closing cost (approximately 3%) that can be rolled into the loan if the property will appraise high enough
Posted on: 01st Apr, 2008 07:42 pm
Hi Maiya,

Welcome to the forum.

Your credit score is not very good. then owner financing is a good option for you.

Can you afford down payment? If not then also owner financing is a good option. Check out "Owner Financing: Why a Buyer should opt for it" at http://www.mortgagefit.com/owner-financing.html

Feel free to ask if you have any further questions.

Best of luck,
Larry
Posted on: 02nd Apr, 2008 03:33 am
WE ARE INTERESTED IN PURCHASING A HOME THRU OWNER FINANCING WHAT ARE THE STEPS NEEDED. WHAT ARE THE RIGHTS OF THE PURCHASER IN THE STATE OF FLORIDA
Posted on: 01st Apr, 2009 06:09 pm
Get an attorney to handle the transaction. He/she will draw up a note that you and the seller will sign.
Posted on: 01st Apr, 2009 06:41 pm
Hi JAMES,

Owner financing is a good option for especially those with bad credit or with less than enough funds to carry the closing costs. There are mainly 3 types of ownerfinancing available in Florida like a land contract, owner seller carry back mortgage and rent-own or lease purchase agreement. You can refer to an article on owner financing at http://www.mortgagefit.com/owner-financing.html. This will help you get an idea about owner financing.
Posted on: 02nd Apr, 2009 12:49 am
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