Owner Financing Contract – A Good Option to Go With
Owner Financing Contract A Good Option to Go With
Owner Financing Contract can be a good option for you if you want to purchase a house but you do not have money for the down payment. Also known as the seller financing contract, this means that the owner allows the buyer to decide if he wishes to pay the price of the house in parts or in whole and if he wishes to pay it with or without the mortgage on the property. This contract can be a perfect choice for you if:
You do not stand eligible for a traditional loan. You may be able to afford traditional mortgage but because of many reasons such as poor credit due to low payment, or due to bankruptcy you may not be considered eligible to qualify for it. If you use seller financing, you can enjoy flexible credit requirements.
You are self-employed or just started a new job and even if you cannot prove your income, this can be the best choice available for you under these circumstances.
You are unable to pay the closing costs. By using this contract you will be able to save a large amount of money.
You are looking forward to get into the home in a short time.
Weighing its Pros and Cons
This contract allows you to purchase a home even if you cannot afford to pay the mortgage. This even enables you to rebuild your credit, once all the debt issues are solved. When you will do regular payments (on monthly basis) your credit will increase.
In case, your seller does not allow you 2 to 5 years for financing, then refinancing the loan and paying off the balance is the option you are left with. If the seller even denies the refinance, then paying off all at once may be a trouble for you.