If you’re like many people searching for land for sale in Florida, you’ve heard about owner financing.
But what are owner-financed homes (and land), and why do some people buy them?
What Are Owner-Financed Homes in Florida?
Owner-financed homes in Florida are just like those you’ll find in other states. Typically, owner financing means that the seller can sell a home faster and get a decent return on their investment… and for buyers who have a tough time securing traditional financing, owner financing can be a great deal.
How Buying an Owner-Financed Home in Florida Works
In owner financing, which is commonly called seller financing, the seller assumes the role of a traditional lender. They’re the bank.
Instead of giving cash to the buyer to purchase the home, the seller extends credit to the buyer.
The buyer and seller both sign a promissory note (it’s a legal contract) that contains the loan’s terms. They then record a mortgage with the appropriate authorities, and the buyer begins making payments to the seller.
Owner-Financed Homes in Florida: Types of Loans Often Used
In many cases, owner-financed homes in Florida are sold with a short-term loan. For example, the buyer pays a normal interest rate for a few years; then, after a predetermined period of time has passed, the seller gets a “balloon” payment (typically the remainder of the balance due on the loan).
This can work out well if buyers don’t initially have good enough credit to secure traditional financing from a bank, a mortgage lender, or a credit union. Buyers can use the time between buying the property and the balloon payment to build their credit, and then get traditional financing to make the balloon payment to the seller.
Do You Have Questions About Owner-Financed Homes in Florida?
Call us at 386-243-0124 right now so we can evaluate your needs and begin working for you. We’d love to help you find owner-financed homes in Florida that are just right for you.
In the meantime, check out these links:
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