Owner Financing 101

Buying a home is a huge component of the American dream. But that dream has seemed out of reach for many people who have blemished credit or simply can’t amass a decent down payment from their 9-to-5, paycheck-to-paycheck lives. Sure, they shoulder a fairly hefty monthly rent — often an amount equal to or greater than a mortgage payment — but finding an extra couple of hundred a month to sock away is nearly impossible. Even if they could scrounge $200 every month to save it would take nearly five years to get $10,000. And, by then, average home prices will probably require $20,000 down, right? It’s a no-win situation. Not necessarily. Owner financing provides an avenue for buyers with no credit history, shaky credit history, or no down payment to grab their piece of the American dream. Owner financing allows homeowners to offer part or all of the home sales price with or without a mortgage on the property. While home financing options may seem like a smorgasbord of choices, owner financing may be the best bet for people who don’t qualify for traditional loans, don’t have the cash reserves needed to put money down or pay closing costs, or must get into a home quickly. Beyond personal residences, owner financing allows new and seasoned investors an opportunity to control a property with little to no money down and build their investment portfolio. Also, owner financing doesn’t just benefit buyers. If you are a seller, you may find that offering owner financing opens up a huge market of potential buyers and moves your property fast. If owner financing is a new concept to you, you may wonder how and where do you get started. Your mind may be brimming with unanswered questions about every aspect of owner financing — from the different types of owner financing to the steps in an owner financing transaction. Where can you find answers to these ever-important questions that will take you from an interested observed to an active and successful investor? This book, of course! This book is arranged in 11 chapters to answer your owner financing questions in logical progression. You can read it straight through, cover to cover, or jump around to get the answers to the questions that are at the forefront of your mind. Let this book be your guide as you navigate the always exciting world of owner-financed real estate. Read more