Seller financing can be an option for some buyers, sellers.

By
Title Insurance with TitleEscrowServices.com

When the home you want does not have a mortgage or has one the seller is willing to carry, seller financing can be a great deal for a person buying a home.

Usually, the seller will want 10 percent down, but not always. The interest rate charged could be a point above the lowest bank rate. But one big advantage: The seller usually doesn't require mortgage insurance, meaning the monthly payment will be lower in any case.

The loan can constructed on a 30-year basis. Most seller-finance deals, however last for five to seven years, then are settled with a balloon payment for the balance.

Sometimes, a buyer who opts for seller financing will be in a better position five or seven years down the road and will then be able to qualify for a 30-year conventional mortgage.

When buying a seller-financed property, be sure to get a current appraisal. Get title insurance for a few hundred dollars. It will show any tax liens and any other claims that could affect a property transfer.

 

Maria Smith

http://elitetitleonline.com

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Christian Mortgage and Real Estate Professionals
Hispanic Real Estate Professionals
Mortgage Bankers
Realtors®
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Rainmaker
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Paul Franciskato
Asset Brokering Services - Junction City, KS

Great information Maria!  I'd like to add that seller financing is an effective tool in some real estate transactions...particularly those where the property is substandard, the buyer has less-than-perfect credit, and/or the seller is motivated to sell quickly.  Offering seller financing can open the market to a greater number of potential buyers.  It is a win-win situation for the buyer and seller because the buyer can more easily get approved and the seller has an increased chance of selling the property more quickly than if conventional financing were to be used. 

An added benefit for the seller who carries the note is the opportunity to sell future payments for a discounted lump sum.  This means the seller can receive a large lump sum in a matter of a couple weeks rather than waiting years for a payout of the full balance!  I buy seller financed note payments through my investor and am happy to speak with anyone who is interested in selling their incoming payments for a discounted lump sum!

Those who would like to know more about using seller financing to sell a property should download a free e-book by visiting the following link and providing the Access Code below.

http://www.streetwisesellerfinancing.com/access.html

Access Code: 2947

Paul Franciskato

Jun 20, 2009 09:38 AM #1
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Rainer
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Maria Smith-Alvira

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