Owner Financed Homes
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Owner Financed Homes
Owner-financed homes, also known as seller financing, is a contractual agreement between the seller and buyer. It allows the buyer to gradually recompense instead of paying for the whole purchase price. Basically, the seller agrees to payment over time for a chance to sell the property. This is a great opportunity for potential buyers who cannot obtain loan from mortgage lenders or banks and for sellers who are having difficulty selling the property. Since it does not involve lenders, the overall terms are negotiable to benefit both the seller and buyer. It saves the latter from closing costs and provides the former with monthly cash flow with better returns.
Depending on the owner, you might be able to put less than 20 percent down, which can help you get into a home faster and potentially even keep more cash in your pocket for emergencies.
If you’re a Texas buyer and are interested in purchasing a home, you must also be aware of the changes to the real estate market over the last decade. If you’re planning to owner finance your home, speak to us to learn more about the details. The Oak Leaf Company can help ensure that you manage your legal liabilities appropriately as you put your property on the market or purchase an owner financed home. Give us a call today.
Owner Financed Homes Houston
The fact that you are buying with owner financing doesn’t make any difference in your home buying experience. You don’t need to spend days trying to find an owner financed home. Our system takes care of this. You shop for a home just the way you do when you buy a home with a conventional mortgage and can buy ANY home you want.
Usually people selling owner-financed homes don’t want to sell to a person with bad credit, but since you won’t buy directly from the seller in our system, you don’t need to worry about your credit score. Learn about Owner Financing Homes For Sale
Houston Owner Financed Homes
Owner financing allows you to get into a home without having to qualify for a bank loan.
Unlike a traditional mortgage, you’re not likely to get a deal for a 30-year payoff. Rather, the owner might offer you a loan for a shorter term, such as five years, after which you might have to pay the balance in what’s called a balloon payment. The goal in that situation would be to have improved your credit enough in the meantime to be able to get a loan through a traditional lender to refinance the home and cover that balloon payment. At that point, you and the owner would officially part ways, and you’d pay your lender only.
That doesn’t mean the loan will always end in a balloon payment, however. State laws and restrictions on the owner could determine if balloon payments are even allowed, and you might find an owner who’s willing to create a loan with terms long enough to have the home paid off by the end.
Every situation is different, but The Oak Leaf Company specialize in helping people get into a home, while working on their credit and getting back to a place of having good credit. Even if your credit is bad, you can still own a home! Call us now.
Are Owner Financed Homes A Good Idea
While owner financing can be great for some people―both buyers and sellers―you need to make sure if it is a good idea.
If you’re a buyer, owner financed homes can be a great option if lenders have turned you down for a mortgage. So if you have a bad credit score or banks have given the side-eye to your history of self-employment, seller financing might be one of your only options for purchasing commercial real estate.
If you’re a seller, you can sell a property much faster and it also gives you the potential to get more money in the long term. You’ll be getting not only the purchase price of the property but also interest on the money you lend―interest that, with a traditional mortgage, would go to a lender instead of your pocket. And depending on what kind of rates you agree on, that interest could really add up.
The main advantage of owner financing is the process is faster, unlike bank loans where there are a lot of procedures to be followed. Down payment, as well as monthly payments, can be negotiated since you are dealing with an individual and not an institution. If for any reason, like a low credit score, you can’t get a loan from the bank, then this is a very advantageous option.
What is Owner Financed Homes
An owner financed home means that the seller is providing the financing for a buyer instead of a third party lender like a bank. In short, the seller is also the lender. Buyers will usually make an upfront down payment and monthly mortgage payments directly to the lender. The interest rate is also agreed upon between the buyer and the seller. Owner financed homes are also known as seller financed homes.
Owner finance homes in Houston are properties where the Seller creates a loan with the purchaser. This just means the Owner provides financing directly as opposed to the Buyer getting a third party loan. The Buyer will consent to make monthly installment payments over a predetermined time, at an agreed interest rate, until the loan is completely reimbursed to the Seller. Generally, the Buyer will sign a Note and Deed of Trust (Security Agreement) to ensure payment to the Seller just like a financial institution would do. Housing can be obtained with owner financing the same way as a financial institution as long as the seller is willing to finance the Buyer for the terms that are agreed upon.
Owner Finance Homes Near Me
If you are looking for an “owner finance homes near me” in the Houston, Texas area but need special financing options, The Oak Leaf Company can help you get into your dream home in no time at all. When buying home, seriously consider using the owner as a lender. Under the current financial crisis, most banks and other traditional lending institutions are not loaning out money for raw land purchases. Those that do lend have strict requirements which can be costly such as a high down payment, points, origination fees, appraisal fees, title insurance fees etc.
Most owner financing deals are simple and straightforward. Generally, the only costs are legal fees needed to draft the appropriate documents. An initial down payment at closing is usually the only requirement. Using the owner as a lender is also a good way to own a house without paying the full price up front. This allows the new owner to use his or her capital to make improvements which generally adds value to home.
Whether you have bad credit or no credit at all, The Oak Leaf Company has what it takes to get everyday homes for everyday people. We make buying a house easy, with a straight forward approach that gets you just what you need with easy owner financing and no credit needed.
For more information about owner financing of homes in the Houston, Texas area, contact The Oak Leaf Company today by phone and get started on buying your dream home today!