Owner financing available! You may have seen this advertised, but what does it mean? You can be the bank. You can sell your property through owner financing and gain a great deal of profit on your investment. As the bank, you can negotiate the terms to the loan in a way that works for you. For instance, you might want to set a time limit on the loan to allow your buyer time to straighten out their credit issues over a two or three-year period. Should your buyer default, they would have to relinquish their rights to the home. Sellers can make several creative financing arrangements to suit the needs of the buyers, as well as your own. It is advisable to seek legal counsel to ensure that the contract protects both yourself and the buyer in the transaction.
While you may be financing the entire loan for some buyers, others may find they qualify for a conventional mortgage but still fall short of the required down payment to get into your property. Therefore you could finance only a portion of the transaction. You have the option to negotiate and figure out something creative that works for you. There are many ways to structure this creativity – too many to discuss in a short article.
Perhaps, you don’t have a whole lot of equity and need to get a certain amount of cash upfront? Or maybe you want or need to sell but you have some other issue that makes it difficult to sell right away. Perhaps…. the list goes on. No two properties are the same and the same is true for each person’s situatiuon.
To learn more about providing this opportunity, we’ll discuss five benefits of using owner financing to sell your house in Port Orchard.
One of the benefits of using owner financing to sell your house in Port Orchard is that you are sure to get your asking price as if you set it in stone. You hold the advantage. The borrowers are willing to pay extra for the opportunity to enjoy the benefits that homeownership brings. If housing prices drop, you benefit from selling at a profit and gain the interest earned during the life of the loan. The balance on the loan won’t change. You still get paid. If housing prices rise, the buyer may achieve an increase in equity when they refinance the property. This can be a great win/win situation for everyone.
Current Cash Flow
The monthly payments on the loan will add cash monthly to your regular income, which is an attractive benefit of using owner financing to sell your house in Port Orchard. And the return on your investment is typically higher than with most fixed-income investments. As the down payment is negotiable, you’ll receive an extra cash boost when the buyers close. You can even negotiate periodic payments to help the buyers meet your demand for the down payment of up to 20 percent or more over time.
One of the benefits of using owner financing to sell your house in Port Orchard is that you can skip all of the red tape associated with traditional mortgages. This speedy process means your home will sell and close fast, which is a plus to buyers who are excited to make a move from renting to homeownership right now. The ability to close in 30 days or less may even make your home stand out among many to a buyer with an urgent need to move.
By offering seller financing, you open the ability to purchase to a whole new market. Having more potential buyers for your property is an excellent benefit of using owner financing to sell your home in Port Orchard. As buyers are entering the market, all too many may now find themselves with less than perfect credit. This status prevents them from financing a new home through conventional lenders as they are unable to meet the stringent qualifications for loan approval. This underserved sector of potential homebuyers is where you can step in as a home seller and offer a beneficial solution to you and the buyer.
Kitsap Home Pro understands the benefits of using owner financing to sell your house in Port Orchard. If you would like to learn more, Kitsap Home Pro is happy to answer any questions or concerns you may have, with absolutely no obligation. Call Kitsap Home Pro at (360) 329-4331 or send us a message today!