CrossRoads Home Solutions, LLC

"We help you move forward"

Benefits of Owner Financing For The Seller

Highest Price. There is no doubt that a seller can insist on and receive the highest price when offering flexible owner-financing terms. In many cases, the seller can receive more than the fair market value of the property by offering seller financing terms. People are always willing to pay a premium for non-qualifying financing.

Fast Closing. Nothing holds up a sale more than new lender financing. In some areas of the country, it can take months for a buyer to qualify and close a new loan to purchase your property. Since most standard real estate contracts contain a financing contingency, you may end up back at square one if your buyer does not qualify. With Seller Financing, we also make sure that your buyer is qualified. We vet the buyer with an extensive process to make sure that you have the best experience possible.

Tax Savings. With Seller Financing, you only pay gains to the extent you receive payments each year. This can be particularly advantageous if you have owned the property for several years

Furthermore, if your house is not particularly nice or unique, it may take you some time to even find an interested buyer. Since you are competing with all of the other houses for sale, you may need to spend thousands of dollars in paint, new carpet and landscaping just getting the house ready for the market. With Seller Financing, you don’t have to do any repairs. Furthermore, an owner-financed transaction can be consummated in a matter of days, since there is no appraisal, underwriting, survey, or other nonsense involved. In many cases, you will be able to sell the property yourself, saving thousands in real estate broker fees.

Benefits of Seller Financing for the Buyer

Despite the elevated purchase price and higher interest rate, there are many benefits to a buyer who engages in an owner financing deal. 

Easy Qualification. The buyer, in many cases, prefers an owner financing 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 qualify for a conventional bank loan. Owner financing becomes the perfect solution for him.

Credit Rating. An owner financing sale may give the buyer a chance to improve his credit rating by owning a home and making payments in a timely manner.

Fast Closing. A buyer can close and move into a property within days, since there is no third party lender holding up the transaction.

Call or email us today to discuss how you can benefit from seller financing.

Carlos Vera

980 277 1415

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