REALTOR® NOTARY SHORT SALES EXPERTISE, FROM HARDSHIP TO CLOSE, OWNER/SELLER FINANCING SPECIALIST, INTERNATIONAL MARKETING, CRAIGS LIST, SOCIAL MEDIA EXPERT.
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JAZ Zydenbos Expertise
Despite the slightly elevated purchase price and interest rate, there are many benefits to a buyer who engages in an seller financed sale transaction. 1. Easy Qualification. The buyer, in many cases, prefers an seller financed sale to conventional financing because it does not require traditional bank income and credit approval. The buyer may have poor credit because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines. Even if he could qualify for a loan, the rate will be astronomical if he has poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating. As you can see, there are dozens of reasons why a buyer cannot (or will not) qualify for a conventional bank loan. The seller financed sale becomes the perfect solution. 2. Credit Rating. An seller financed sale may give the buyer a chance to improve his credit rating by owning a home and making payments timely. 3. No Loan Costs. One of the biggest benefits for the buyer is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other "junk" fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-carry installment sale. 4. Fast Closing. A buyer can close and move into a property within days, since there is no third party lender holding up the transaction. To pre-qualify for Seller Financing and to find Seller Financed homes in your area, click here.