What is owner financing all about? How does it work?

Question

Iwas just wondering what is owner financing? me and my husband are looking for a place

Answer 1

Its something that not too many people will do these days. It really leaves all the burden on the actual owner if you change your mind. Most of the time they are not very nice houses and they owner finance because they cant sell it.

Answer 2

Home mortgages are huge money makers. Those sellers who can afford to will often take the mortgage as an additional way to profit. Generally, their qualifying criteria may vary and may be more liberal than a government backed loan.

Answer 3

The owner does not owe any money on the house - or will continue to make payments on their small mortgage while collecting mortgage payments from you on a much higher balance and interest rate.

If I owned a home free and clear I might have an easy time finding a buyer  - maybe one who does not have very good credit and would not qualify for a home loan - by offering to "carry the paper" or "finance" the purchase for them.

Answer 4

Th owner takes back a mortgage and acts like the bank.  It is a transaction that most, if not all, attorneys advise against doing.