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Owner Finance Home Loan

Nowadays there are thousands of people with various needs. Whether they want to buy a home for their family, a new car or even a boat, the cash seem to always be a problem. If you want to buy a nice house for you or for your family but you don’t have the necessary founds, there are several options you can take in order to obtain the money. You can apply for a loan from a local bank or you can sell something in order to raise money. None of these tow options seem to be advantageous when there is a third possibility and that is the owner financing.

This kind of financing is suitable for those who don’t have the necessary money, who want to avoid dealing with the bank or for those who don’t qualify for a loan. Like any other deal, there are certain advantages and disadvantages. For instance, the sellers may receive only a small down payment or no payment at all, depending on how they get along with the buyer.

There is also the risk that the buyers won’t pay anything forcing the owner to put an end to the deal. When owner financing their assets, the owners should be really careful to whom they sell their house. Thus, it is advisable to take into account signing a due-on-sale clause. This is a contract which enables the owner to require immediate payment in case the buyer sells his/hers house.

Apart from this, there are certain advantages too. You can sell your house very fast without any mediators like banks or brokers even if it doesn’t qualify for a bank loan, due to its positioning or any other aspects. You can also sell your house at the desired price or more, if you find a buyer who is willing to pay for it, if there is a smaller down payment that he/she can afford, as there are banks that won’t cover the rate’s value.

There is a good reason for selling your house faster and that's the tax advantage which also raises the buyer’s interest. You are also able to sell the note to an investor in order to get the cash faster and the nice part is that you can sell it immediately or you can wait a certain period of time before you do that. All in all, many home owners prefer this type of transaction because they can receive monthly payments, sometimes for higher rates.

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