Finding Homes For Sale With Seller Financing - Part 1

Published by peter | Filed under Buyer / Seller Tips, Real Estate

I was looking through a list of topics and found one that really stood out: how to find homes for sale where the seller was offering some or all seller financing. Seller financing is a topic about which many people could benefit from learning.Most real estate agents will never do a transaction involving seller financing, and most homebuyers would never even think about asking for this type of assistance. And finally, most home sellers would never even realize the benefit to themselves to offer some level of owner financing.The purpose of this post is to explore the benefits of seller financing for both home buyers and home sellers.Often times, we hear the term creative financing being used in real estate, yet few people really understand what this really means. For the sake of simplicity, I refer to “creative financing” as anything that occurs in financing a home purchase that falls outside of just working with a lender’s standard loan product. Seller financing (or owner financing) is one great creative financing technique.In a seller financed transaction, the current owner of the home will lend some or all (typically only some) of the money required for the purchase of the home to the buyer by using what is called a “purchase money mortgage. ”But it’s the seller’s home, why would he or she lend money to a buyer to buy it? There are quite a few answers that work here, but right now the best answer is because by offering to assist buyers in the purchase of their home, home sellers are making it available to more buyers. The more people who are willing and able to buy a home, the higher the value of that home will be. To be continued…