Pros and Cons of Owner Financing


Owner Installment Sales

Owner financing or seller financing is just what it sounds like. Instead of the home owner receiving a major loan from a bank, the individual selling the home lends the buyer funds for the purchase of the property. In this type of transaction, the seller plays the role of the bank and is the financer. If you’re searching owner financing Albuquerque and looking for additional information, contact Sunset Escrow today.

The Pros and Cons for Buyers 
There are some pros and cons when considering owner financing. The potential buyer can reap some advantages to the buyer who engages in an installment sale transaction. The cons that are seen are often the elevated purchase price and higher interest rates. However, new conventional lenders offer fixed interest rate loans today. Advantages of owner financing for the buyer include:

  • Easy Qualification
  • Credit Rating
  • No Loan Costs
  • Fast Closing

Benefits to the Seller

On many occasions, we see sellers that want fast cash and to pay as little taxes possible. Benefits of owner financing for the sale means they can charge a high price, sometimes higher than fair market value. The sale of a property by an owner financing installment will net the seller cash and more capital gain. Some benefits to the seller include:

  • Higher Sale Price
  • More Cash Upfront
  • Fast Closing
  • Tax Savings

Sunwest Trust

As financing experts, Sunwest Trust simplifies non-traditional transactions, which enable both buyers and sellers to reap the most benefits. Since 1987, we’ve become the most trusted escrow company in New Mexico. We believe that helping our clients achieve their goals is extremely important to the success of our business. Transparency is at our core. If you’ve been searching owner financing Albuquerque and want to gain some additional insight to benefits and cons, contact Sunwest Trust today.

Comments

Post a Comment

Popular posts from this blog

What Should A Seller Know About Offering Owner Financing To A Home Buyer?

Image
If you are considering offering owner financing when selling your home, there are a few things to think about, and you may have questions. If you are interested in owner financing homes, Albuquerque trusts Sunwest Escrow - our team is always available to answer your questions. Is Owner Financing Safe for the Buyer? Owner financing is as safe as the terms that are written out. It is in the best interest of all parties involved to have a lawyer look over the paperwork before signing. Selling a home is a big undertaking no matter how you do it, but even more so if you are owner financing homes. Albuquerque has many neighborhoods that are in demand where seller financing may make sense for you. How Does Owner Financing Work When Selling a House? When you are owner financing, it is similar to how any house would sell normally, except in a practical sense, you are the bank. A contract is signed where the buyer makes regular payments to the seller, less any down payment, and it
Read more

FSBO: From the Seller’s Point of View

"For Sale By Owner" — You’ve surely seen these signs throughout Albuquerque and surrounding communities. However, you may have only learned about this home-selling method from the perspective of the buyer or an escrow agent. At Sunwest Escrow, we believe that all homeowners should be informed of this option before they even think about selling their home. By examining the advantages of listing a home without the traditional help of a real estate company, you can discover the benefits of For Sale By Owner  from a seller’s point of view. Why Sellers Use "For Sale By Owner" Options? There are many reasons why these individuals choose to forego help from a real estate company, including: ●         They want to save on real estate broker commission fees. ●         They will allow the buyer to choose owner financing. ●         They need a quick, short sale of their property. ●         They have sold a home on their own previously. 6 Steps Sellers Take in
Read more