If you’re thinking about selling your house and you’re wondering what your options are there are a few out there. One of them may be right for you. Perhaps you’re exploring something called “seller financing” (also called “owner financing”). Owner financing is a little-known, but very effective way to sell your house. Maybe you’re wondering, what is “seller financing” and is this option right for me? And is this a good idea for me as a potential seller in Paducah and Surrounding Areas? That’s a great question and let’s talk about it in this blog post…
Here’s How Owner Financing Works
If we were going about this transaction in the normal home-selling way, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they would pay a down payment for the home and then they would make regular monthly mortgage payments until the borrowed amount is paid in full. This is the typical way most people go about purchasing a home. Right?
Unfortunately, this is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of, and it involves what’s called owner financing.
With owner financing, everything is completely similar except this one thing – the seller of the house now acts as the bank: the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid in full. Then the ownership of the house will get transferred to the buyer. In other words, you’ve cut out the middleman (the bank) and their fee and are able to pocket what you would have paid them to make this transaction for you.
Many Homeowners Are Wondering, Is Owner Financing A Good Idea For The Seller In Paducah and Surrounding Areas
In short, yes! Many sellers do find owner financing to be a great idea for several reasons.
- They like the fact that they have the opportunity to see a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
- They like the fact that they are able to get monthly cash flow from financing payments
- They like the fact that they still own the house and are protected, and should the seller stop paying the home reverts back to them and not a bank
- They like the fact that there is no property management
So, what’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to get out from in under that headache property you have and to start selling some of your rentals, owner financing might be a great option for you.
Even if you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.