If you’re thinking about selling your house and you’re wondering about all of your options, perhaps you’re exploring something called “seller financing” (also called “owner financing”). Owner financing is a little known but very effective way to sell your house. Maybe you’re wondering is owner financing a good idea for the seller in Kalamazoo? That’s a great question and we’ll talk about it in this blog post…
Here’s How Owner Financing Works
In a normal home selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full.
This is the most familiar to people who are buying and selling. There is another way to sell your house that you might not be aware of and it involves owner financing.
With owner financing, everything is similar except this one thing – the seller of the house acts like the bank. The buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid in full. Then the ownership of the house transfers to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Kalamazoo
Many sellers do find owner financing to be a great idea.
- They like that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
- They like that they get monthly cash flow from financing payments
- They like that they still own the house and are protected, should the seller stop paying
- They like that there is no property management
There are many benefits; you get ongoing cash flow, protection, and you’re still able to sell your house. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental properties, owner financing might be a great option for you.
If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.
With that said, owner financing is not for everyone. If you want to talk with us about how owner financing might work for you and what some of your other options are for selling your home, please call us at (269) 775-4095 or click here and fill out the form at the top. We will get back to you right away!
