Should You Consider Owner Financing?

10 May

Should You Consider Owner Financing?

So you have lived in your home for a while now and are thinking about selling and moving into something that is better suited to your current lifestyle.  However, you may be wondering if now is the right time to sell.  You have heard all of the rumors about the housing market and how hard it is to get financing.  So what are your options?

Well, here is an option that you may not have thought of – owner financing.   If you have a lot of equity in your home and you do not need that equity to buy another home, then owner financing may be the way to go.

Let’s talk about how owner financing works.

1.  Owner financing will benefit you by helping you sell  your home more quickly and will also benefit your buyer by enabling them to buy a home now instead of having to wait

2.  Seller financing usually means the buyer will secure the largest part of the home purchase through a mortgage company

3.  The buyer then gets a smaller second loan from the sellers

4.  Example:  the buyer may finance 75% of the loan with the mortgage company, put 15% cash down and then ask the sellers to finance the remaining balance

5.  The terms and interest rates on seller carry backs are handled on a case by case basis

6.  The seller generally gets a better return on their investment versus a one to five year CD or Treasury note

If you decide to honor an owner financing option, make sure you protect yourself to the fullest extent.  You must verify the buyer’s income, credit history and job stability before proceeding with the final paperwork.  Put everything in writing!

Owner financing may be just the option you need to help you get into your new home sooner rather than later.  Talk to your realtor about the best way to handle an owner financing deal.  Your realtor will be able to help you through this process and help to make sure everything is handled in your best interest.

About the Author:  Millie Gil has been a successful Licensed Realtor for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to

Servicing:  Port St. Lucie, Palm City, Jensen Beach, Stuart, Vero Beach,  Hutchinson Island, Fort Pierce,  Palm Beach, Jacksonville, Jacksonville Beach, Ponte Vedra Beach, Palm Coast, Neptune Beach, Amelia Island, Atlantic Beach, Fernandina Beach, Saint Johns, Saint Augustine, Daytona Beach, Fleming Island and New York real estate.

View thousands of listings,,, www.TheCascadesAtStLucieWest


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