Welcome to
Seller Financing
The place where your property dreams meet innovative solutions. Here, we empower homeowners like you with flexible, tailored financing options that make selling your property easier and more profitable.
Benefits FOR BUYERS:
- Save on fees: By bypassing the conventional lender, buyers may avoid loan origination fees, underwriting costs, and other charges levied by banks and mortgage companies.
- Easier qualification: Seller financing provides an alternative financing option for buyers who may not qualify for traditional mortgages due to factors like poor credit or illiquid funds for a down payment.
- Potential for better terms: Sellers may be willing to offer more favorable financing terms, such as lower interest rates or flexible repayment schedules, compared to traditional lenders. While it’s not a given, it’s worth negotiating.
- Access to unique properties: Seller financing can open up opportunities for buyers to purchase unique or non-conforming properties that may not qualify for traditional financing, like properties sold in as-is condition.
- Property ownership: Seller financing allows buyers to become property owners immediately and start building equity, even as they work on improving their finances.
Benefits FOR SELLERS:
- Potential to maximize profits: Sellers stand to earn interest on the sales price of their property, resulting in a potentially greater payoff compared to the traditional sales process alone.
- Passive income stream: Seller financing allows homeowners to receive a steady income stream over time. Plus, the deal is backed by the property, adding an extra layer of stability.
- Tax benefits: In many cases, sellers can defer capital gains taxes by structuring the sale as an installment sale, spreading the tax liability over multiple years.
- Faster sale: By providing financing, sellers eliminate the need to work with third-party mortgage companies, appraisal firms, and even realtors. With fewer parties involved, the sales process moves more efficiently and quickly.
- Flexibility: Sellers can tailor the financing terms to their preferences, such as the interest rate, repayment period, and down payment requirements.
know more about seller financing
The sale via owner financing doesn’t require long-term commitment.
If for some reason, the seller is in need of the cash in the middle of term of the loan , the seller could get immediate cash. Selling the promissory note to an investor or lender is possible now.
According to Amerinote Xchange, a company specializing in secondary-market funding, promissory notes typically sell for 65% to 90% of their face value.
Unlike a bank mortgage, seller financing typically involves few or no closing costs and may not require an appraisal.
Also, the seller-financing process is much faster, often settling within a week.
A balloon payment is the final, large sum due on a loan with smaller monthly payments leading up to it. Initial payments cover mostly interest, leaving the principal for the balloon payment. This structure is common in balloon loans.
In most Seller Financing deals, Buyers make monthly payments over a period (often 30 years) with a balloon payment due in 3, 5, 7, or 10 years, depending on the agreement. These terms are a key part of Seller Financing negotiations.