What is Owner Financing?
In the real estate business, there are many different ways to conduct a home sale or purchase transaction. Even if most people use an agent to sell or buy a home, there are always alternative methods that work better for certain situations. Owner financing, also known as seller financing or creative financing, is one of these methods.
In short, owner financing involves having the owner of a property finance the transaction rather than using a bank to do so. This means that instead of taking out a mortgage, the buyer borrows money from the seller. This gives both parties more flexibility in negotiating an agreement, because the terms are set solely by them.
Because you don’t use a middleman when owner financing a house, the sale usually takes less time and involves less closing costs. Also, because no bank is involved, owner financed transactions do not require a credit check. This means that people who do not qualify for a mortgage but still want to own a home have the chance to.
Win-Win property group offers owner financed homes because we value the freedom and flexibility it gives us and our clients. We believe that homeownership should be attainable for everyone, and owner financing gives us a win-win way to help achieve that goal.
If you have any lingering questions that weren’t answered here, check out this comprehensive guide to seller financing on Biggerpockets or contact us.