Are you searching for a home in Austin Texas? If so, you may have seen some properties listed along with the keywords “owner financing”. This means that the owner is going to finance the property themselves because the home is paid off and they will essentially act as the bank and finance the property.
When an owner carries the paper they will charge an interest rate just like a traditional bank like a traditional lender and there will be a term that the borrower will be expected to pay the home off in.
Good For Some Home Buyers
Owner financing works out especially well for some home buyers who haven’t been able to get pre-approved for a mortgage loan. With this type of financing, the buyer can live in the home for a period of 5 years or longer and use that time to fix their credit until they reapply for a mortgage loan, get financed and pay off the owner of the property.
Works Well For Some Owners
This type of financing can also work out well for some home owners as well because it enables them to start get up front money for their home via the deposit and a monthly payment from the buyer that they have owner financed
Sadly, during a booming real estate market, the owner cannot take advantage of great demand for real estate and sell their home or refinance the mortgage because the home will obviously be occupied by someone who is intent on buying the home via owner financing.
What To Do Before Considering Owner Financing
If you’re thinking about buying an owner financed home or selling your home via owner financing contact us today at (512) 944-7378 or click here to connect with us online.
Don’t settle for unless you’ve explored all options and have confirmed that it’s the right one for you!