SELLER FINANCING IS ALSO OWNER FINANCING

Have you ever considered selling your home by financing it yourself, seller financing? Have you ever considered buying a home that was financed by the home owner, owner financing?

Seller Financing is simply where the property owner finances all or part of the property’s value¬†for the buyer. This happens for a couple of reasons. Often this is done to assist a buyer who is currently unable to obtain a mortgage through conventional channels. Owner financing allows the buyer to purchase a home, when they otherwise would have to continue renting.

The owner can finance all or part of the property cost, and they can charge interest on the amount they’re financing, just like a bank or other lender would do. And, they’ll be a lien holder on the property until the loan is satisfied in full. There are owners who will finance the entire cost, while others will required a down payment.

Another reason a seller provides owner financing is simply to gain the interest on the loan. Interest rates on CDs and other short and long term investments are very low, so this is just another way the seller can gain a higher return on their investment than they can receive on those type investments.

A seller may also receive a higher selling price for their property by offering owner financing, because these offers often attract buyers who otherwise cannot obtain their own mortgage.

Owner financing is just another way to help folks get into their dream homes, and seller financing is just another way to sell your home that just isn’t selling through traditional means. I’d love to hear how you’ve benefited from either of these ways of financing.

If you would like to buy a owner financed property in central Arkansas, or if you have a property you would consider financing yourself, give us a call at 501-777-5780.  We want to solve real estate problems like these!