owner financing

[Magilla]

Ive been looking at houses/ property and see quite a few of them saying they are offering owner financing. What does that exactly imply? Is it kind of a rent/ lease to own deal where they carry the note until final payment is received? How does it differ from a mortgage from the bank? Easier to get with out a secondary money institution? How does it help the seller? instead of taking a lump sum instead of gradual payments? How are the payments done deposited into the bank or an escrow? Does your credit play any factor into this? I realize this is a younger group of people who i am asking this question to but who knows maybe friends/ family have done something like this.

[Saharicon]

Generally people that have bad credit do this, and then the owner will finance it in there name. Its a win win situation for both because the owner then collects a "rent" on the property in form of the mortgage payment. The other plus is that the owner doesnt have to pay the ridiculous tax fees associated with selling a home, and can also make even more money on interest charged on the amount loaned.


Basically in short, the owner acts as the bank to you. You own the house completely, you are just paying the owner instead of the bank and if you dont have amazing credit this works out for both of you as long as the owner charges a decent % rate on the interest. Generally the owners will ask you to make the payments into an escrow account as well, which they have set up.


edit: if you have more questions i can explain it better. I have a splitting head ache and ive been up for like 30 hours. Im in and out of it

[Kyle]

Just be careful so you dont get screwed if its a con artist.

[Saharicon]

Just be careful so you dont get screwed if its a con artist.

You can still use a agent for owner financing so all legal documents are in order.

[Nick]

Just make sure the house/property you are buying isnt under a mortgage anymore, because the owner has to have complete rights to the property in order to operate under these conditions.

[Magilla]

What rights do the owner and buyer have if its all legit?
How are there interest rates handled? like a banks?
Is it all put through in paper work and documented like a regular mortgage?


been browsing houses in florida and it seems a ton of people are doing this, probably to avoid all the rates for brokerage fees. More or less looking to buy with in the next year or so. Buy it and rent out so it would be paying for its self to a point

Cody hit me on aim if you get a chance

[Saharicon]

What rights do the owner and buyer have if its all legit?
How are there interest rates handled? like a banks?
Is it all put through in paper work and documented like a regular mortgage?


been browsing houses in florida and it seems a ton of people are doing this, probably to avoid all the rates for brokerage fees. More or less looking to buy with in the next year or so. Buy it and rent out so it would be paying for its self to a point

its really not handled much different than getting a loan from a bank. The owner can set interest rates and so on. As far as the loan goes, that would all be decided on by you and the owner. You can make an offer, than can counter offer.

Really man you can do pretty much anything in a buy contract on a house, esp with the way the housing market is right now.

You could say, I will by this house for $100k, you finance it, at this interest rate for so and so years. and you have to put a stripper pole in the living room for me. You can write anything you want in a contract and if they want to sell the house that bad, they will do it.

and yes, i recommend getting a good real estate agent and they will handle all the legalities for you and paper work with your approval.

[Magilla]

Thanks dude ive been looking for a little while and the prices are fucking dope for the houses down there >60000 in cape coral, fort myers, lehigh and around that area. not a lot of land on the property but i really dont care about that. taxes and insurance are pretty cheap there and a lot of these houses were built with in the last 10 years. I got family and such in that area which also helps

[Saharicon]

Thanks dude ive been looking for a little while and the prices are fucking dope for the houses down there >60000 in cape coral, fort myers, lehigh and around that area. not a lot of land on the property but i really dont care about that. taxes and insurance are pretty cheap there and a lot of these houses were built with in the last 10 years. I got family and such in that area which also helps

Yea, no problem man. Its def a really good time to buy a house. I lived in Florida for awhile, fun place.. just not my cup of tea to live.

[Magilla]

Yea, no problem man. Its def a really good time to buy a house. I lived in Florida for awhile, fun place.. just not my cup of tea to live.

I did also and i liked the temps all year round. Yea theres no wheeling but im sure ill get by with out it.

[Saharicon]

I did also and i liked the temps all year round. Yea theres no wheeling but im sure ill get by with out it.

def good partying down there, thats always a plus