Owner Financing

One of the options we provide for home buyers is the ability to Owner Finance the property.
The basic idea of “Owner Financing” is that the home buyer is unable or un-willing to get traditional bank financing. This allows us, the property owner, to finance the property for you.

The financing structure of a “Owner Financing” agreement typically has three parts:

• A Non-Refundable down payment. Can be less than or equivalent to a standard down payment (20%). The amount depends on a few factors, including your credit worthiness, monthly payment and agreed purchase price.
• The monthly payment. This is determined based on a review of your finances. It is important that we determine together what you are able to afford based on a realistic look at your finances. There are specific laws (Dodd-Frank) that protect borrowers from predatory lending. We typically use a third party mortgage broker to review the numbers to make sure the payments are fair.
• The purchase price. Based upon the purchase price and the monthly payment we can determine what the duration of the financing will be.
• Interest Rate – Standard interest  rate calculation for a mortgage.

All of the above factors are negotiated on a per deal basis.

What are the benefits to a home buyer with Owner Financing?

• Controlled Monthly Payments
• Typically lower than normal down payments
• No Bank Qualifying. Our criteria is less strict than banks. This does not mean we are negligent, simply flexible.
• Exit Flexibility. If you decide that this home is not one you are interested in owning, you call us up and we discuss how to terminate the agreement. All of this exit information is in the agreement we sign.
• bank Re-Financing – If you are able to get bank financing on the property in a year or a few years and wish to re-finance, this is available to you! With our method, we create a mortgage for the property, and your payments can help prove your ability to get traditional bank financing!
• Improve your credit! We report payments to credit agencies, which can help improve your credit score
• Payment flexibility – In case of serious financial difficulties, we can be reached with a phone call and are always willing to talk.

What else do I need to know?
Keep in mind, that just like a bank, our down payments are non-refundable.
With Owner Financing, we hand the complete control of the property over to you. This means you are responsible for paying taxes, insurance, repairs, etc. All of these costs will be considered when determining what your monthly payment will be. We will not put people into a house they cannot afford.

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homeowner Blog Education

Mortgages

30 year fixed, 15 year fixed, variable, etc

some mortgage stuff

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Amortization

Amortization is the process where you calculate and observe the value of a loan (in principal and interest) over the total life of the loan. It allows you to “space out” the cost of something large over a long period of time. This is the root of what makes real estate deals work for people who are investing in properties.

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Blog Education