Financing Your Home Sale or Purchase

Real Estate Agent with Coldwell Banker

Financing a home sale "today" seems to be a real challenge, however, there are some alternatives worth considering.  

     **It's important that you seek the advise of your financing/tax specialist**.

There was a time in the early ‘80s when interest rates were ranging from 13 - 18 % and   conventional loans were also hard to come by.  We sold our listings with Seller financing.  It can be done as the 1st trust deed or as a second trust deed behind a "lenders" 1st position. 

When Seller is willing to carry a 2nd TD - the Bank/Lender is going to require that the terms are structured for a minimum of five (5) years.  Terms can then be set to one of many ways - Interest can be simple interest at a rate offering a good return with the balance due in five years, Pre determined pay down amounts can be setup for once a year, twice a year, 4 times a year, etc.

The seller can consider the interest payments, an addition to the sales price.  For the buyer, the fees will typically be much lower than they would with the bank.

These are some concepts to get you thinking with an open mind of the possible options that may make the difference in a successful sale or purchase of your home.  The idea is to think of other ways to sell/buy a home when prices are looking good, and yet the conventional loans are difficult to find.

     **Please be sure to check with your personal finance/tax specialist**

Comments (0)