Owner financed homes
Finding owner financed homes can be a little bit exhausting as less than 10 percent of home owners finance their homes themselves. Owner financing is a situation in which the owner of a property gives out loan or lend money to the buyer in other for the buyer to get the home from him and also to get the property off his list.
There are many advantages of owner financing to the seller but the main advantage is that, he would be able to get the property off his list on time. Many buyers actually think finding an owner financed home is difficult but there are steps you can follow to get an owner financed home.
5 Steps to find owner financed homes
- Finding an estate agent. It gets easier when you get an estate management agent to help in getting your home. Many estate agents know a number of owner financed homes and they can help with that. With a few hundreds of dollars to hire an estate agent, things get better in finding an owner financed homes. There are some estate agents too that have homes they want to owner finance and you can go through their list to check the home you want or you would prefer.
- Reading homes ads one newspapers or listening to home ads on radio stations. A lot of home owners advertise their homes via newspapers and radio stations. Most of these home owners would state it clear that the home is owner financed and can also be sold to any individual ready to pay at the time.
- Asking from home owners personally. There are many home owners that just put a notice of ‘home for sale’ at the front of the house but you can actually get to meet the home owner if he does owner financing. There are many home owners who might actually turn down the offer but two out of ten will surely accept to owner finance the house. This is one of the best way to get owner financed homes.
- Finding a Federal Housing Administration agents. There is some owner financed agents that have been insured loan by the federal housing administration. You can look for more than two agents to compare their interest rates. In this, there are two type of mortgage payment made. One to the federal housing administration and another to the lender.
- Send out ads. I think this is another simpler method to get an owner financed homes. You can tell family members, friends and even on newspapers to find any owner financed homes. You would be contacted if any seller or lender or estate agents have owner financed homes.
Things to consider when you want an owner financed homes.
- Credit score. Even though your credit score might not matter or even your credit score is low, high credit score convince many of the homeowners that you are reliable and would be able to pay. Some homeowners won’t finance the home if your credit score is below 680 while some would finance even with you having below 680 credit score. You can get your credit score from your credit report.
- Financial capacity. How much down payment can you make? Making a reasonable down payment reduces your loan and also your interest rate. For example, if a homeowner decides to owner finance his home at the rate of $45,000 with an interest of 10%. You can get the loan and the interest rate reduced if you are able to make a down payment of $15,000 which reduces your interest rate to 6.7% and a loan to $30,000. Your financial capacity also determines if you would be able to make the mortgage payment.
- Compare different owner financed home interest rate. There are some homes with lower value and high interest rate and some homes with high value but lower interest rate. Don’t get yourself concentrated on one home but rather make inquiries and compare different charges and interest rate to know the one you would be able to pay for without the home being collected back If you could not pay at agreement end. Comparing rates it best option to save money while having owner financed homes.
- Consider every necessary charges on the home. Charges like the tax can be very expensive on the home. There are different tax charges on every hone depending on the value of the home. Consider if the tax is what you would be able to pay with the mortgage payment.