Owner financing available! You may have seen this advertised, but what does it mean. While you still hold ownership, you can sell your
property through owner financing and gain a great deal of profit on your
investment. There is commonly a time limit on the loan to allow the
buyers 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 downpayment to get into your property. Therefore you
could finance only a portion of the transaction. To learn more about
providing this opportunity to buyers, we will discuss five benefits of
using owner financing to sell your house in Belleville.
Non-Negotiable Price
One of the benefits of using owner financing to sell your house in Belleville 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. If housing prices
rise, the buyer may achieve an increase in equity when they refinance
the property.
Current Cash Flow
The monthly payments towards interest 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 Belleville. And the return on your
investment is typically higher than with most fixed-income investments.
As the downpayment 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 downpayment of up to 20 percent or
more over time.
Quick Closing
One of the benefits of using owner financing to sell your house in Belleville 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.
Buyer Pool
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
Belleville. 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.
Cardinal Creek Properties fully understands the benefits of using owner financing to sell your house in Belleville. If you would like to
learn more, Cardinal Creek Properties is happy to answer any questions
or concerns you may have, with absolutely no obligation. Call Cardinal
Creek Properties at (314) 467-8137 or send us a message today!
