Variations on owner financing.

Owner financing is another great option for people to take advantage of the deals you’ll find in the current economic climate.

Owner financing comes in a couple of variations: complete owner financing, where the owner holds the deed and the mortgage on the home and you pay the owner; or partial owner financing, where you take out a conventional loan for a portion of the home purchase, and pay the seller for the rest.

In complete owner financing, you typically agree to pay the owner at a higher interest rate than he or she would receive from the bank. So if the seller has a mortgage at 6%, you might pay 10% for the option of using owner financing.

Most people who use owner financing use it similar to a lease-purchase option; they take the owner financing long enough to clean up credit or save a downpayment, and then apply for a conventional loan to outright purchase a home. However, owner financing offers more flexibility than a lease-purchase option, because you’re not locked into finding financing in a specific period of time.

Partial owner financing is another tool you can use to get a home right now while deals are good.

In partial owner financing, you take out a conventional mortgage for as much as the bank will qualify you. The seller then finances the difference between your mortgage and the purchase price. For example, if you want to buy a $150,000 home, but you can only get conventional financing for $100,000, you might work out a partial owner financing deal where the owner finances the other $50,000.

In the event of partial owner financing, you pay your traditional mortgage payment to the lender every month, and then pay a second payment to the seller for the partial owner financing. This is a great option if you can’t afford a down-payment, or can’t quite get a loan big enough to cover the purchase price of the home.

Don’t miss out on the great deals you’ll find in today’s economic climate.

Fill out a buyer application from Home Seller Assist created by John Alexander and let’s talk! You don’t want to miss your limited window of opportunity before home prices go up again.

With the array of non-traditional financing options available, we can help you find your dream home now, before prices rise and you can’t afford it!