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What is Seller Financing?

What is Seller Financing
Often overlooked because few people know what it is, seller financing is an alternate way to borrow money to buy a home. It’s not very common, but it can be an excellent way to buy (or sell) your home.

What is Seller Financing?

Seller financing is a method some sellers use to sell to a buyer without involving big banks and lenders.
The terms of the agreement are completely between the buyer and seller; there’s nobody underwriting or anything like that. The two parties negotiate a down payment, monthly payments, and determine the length of a loan.
Calling it a loan is a little misleading, though. The seller doesn’t actually give the buyer any money; instead, they count on the buyer (and establish a contract with the buyer) to make monthly payments.

Why Do Some Sellers Offer This Type of Financing?

Sometimes sellers who don’t need the full proceeds from the sale of a home can offer seller financing, but it works well in other situations, too.
Many sellers offer this type of financing because:

  • It can help them sell faster
  • They want to minimize carrying costs while they’re waiting for a buyer
  • They want to get closer to the full asking price
  • They want to collect enough money for a down payment on their next home
  • They want to pay down their debts
  • They want to avoid the monthly expenses associated with owning a home

Are You Buying a Home in Port Aransas?

If you’re looking for a home in the beautiful city of Port Aransas, we’d love to help you.
Call us at 361-563-7788 or get in touch with us online to tell us what you want from your next home. We’ll begin searching right away.
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