Owner financing is usually offered by the seller to remove the need for a bank. Instead of the bank acting as an intermediary, the seller acts as the bank, holding and managing the mortgage. The seller has more autonomy over the structure of the deal. The transaction benefits both the on buying and orlando home and selling it reducing the bureaucracy that usually comes with working with a traditional financial institution. Luckily, As Is Now specializes in owner financing for sellers!
How it works
Owner financing works similarly to any other mortgage. A down payment is collected by the lender, and the remaining balance is financed. The seller’s down payment amount usually meets equity requirements while minimizing foreclosure risks.
Why do sellers choose owner financing?
We have noticed sellers choose owner financing for a number of reasons. It is expedient for them in most cases, helping them reduce their monthly obligations immediately. The closing process is much quicker with this type of arrangement. Sellers can choose from a range of different types of payment options. Typical arrangements can include a balloon payment, fixed-rate amortization, interest only, and less-than-interest only arrangements. It is possible to combine different aspects of the various payment option types to create the loan. Owner financing also broadens access to prospective buyers.