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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