Owner financing is also known as seller financing, and it is a term used when the owner of the home you are buying is financing the purchase. In this type of transaction the owner of the home takes the role of a traditional lender (Bank).

Very often people looking for homes for sale realize that they don’t have the ability to purchase a home using a traditional lender. Factors such as credit score, credit history, or down payment can prevent someone from qualifying for a traditional mortgage. When this happens, looking for homes for sale financed by owner is a viable option. Owner financing real estate is more flexible when it comes to qualifying a buyer that wouldn't qualify with a conventional lender because of his/her bad credit or lack of credit.

Owner financing benefits for home buyers

Even though a credit report is obtained, the seller can be more flexible with the interpretation of your FICO score, collections, or charge offs so you can qualify.

You can negotiate down payment options or make lump-sum payments towards the down payment.

Since there is no institutional lender, there will be no loan or discount points, origination fees, processing fees, administration fees or any other closing costs. Keep in mind that with owner financing there will be some charges that you will need to take care of besides the down payment.

The buyers can take possession of the home a lot faster because they are dealing with a direct lender and there is no middle entity holding up the process.

If you are thinking about buying a home in Houston with owner financing give us a call at 713-413-1000!