Have you considered a Purchase Money Mortgage?

What is a Purchase Money Mortgage?
* Technically any mortgage on real property executed to secure the purchase money from the buyer is
   considered to be a Purchase Money Mortgage
* Commonly referred to as a mortgage that is taken back by a seller from the buyer in lieu of purchase
   money
* Can be either a single-financed debt, or it can be used to fill a gap between the buyers down payment
   and the new first mortgage

Advantages for the seller
* In a financially stressed market, seller financing may be more attractive to a buyer, resulting in a
   quicker sale   
* The sale usually closes quicker
* You may be able to defer income tax liability
* Interest rates provide a great yearly return

Advantages for the buyer
* You may be able to buy property you can not qualify for if relying
   on conventional financing
* Closing costs are usually lower
* The down payment required is usually smaller
* You may not be required to purchase mortgage insurance
* Flexible payment terms may be available
* Unlike an Agreement of Sale, you obtain legal title to the property

If you don't currently qualify for a conventional mortgage, you might consider a Purchase Money Mortgage. It can help a seller realize a high rate of return, and make it easier for a buyer to obtain financing. As with all contracts, it is strongly recommended you consult with an attorney familiar with real estate law.

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If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com