subject: Home Loans - Seller Financing Is Great Option To Speed Up Selling Of Your Home [print this page] Adding the adage "Seller Financing" or "Owner Will Carry" to your listing for the selling of your home can help to bring in more interested buyers than the tradition way of selling a home.
With the reduced rate of the housing market, this can really up your chances of selling your property more quickly. With the market being in the state it is in, sellers are starting to become more flexible and creative in the attempt to sell their properties.
There are many advantages to seller financing. This can provide the needed opportunity for many buyers to purchase your home, when under traditional financing they couldn't. A lien on a first mortgage can be gotten by the seller if the house is owned outright or the seller has a very small amount still owed on the mortgage.
The small amount still owed will have to be paid in full by the time of the closing. A seller can offer a second mortgage option to the buyer on top of their first mortgage for 80% of the value of the loan, which will make it much simpler process to qualify for the loan.
This will also make mortgage insurance not needed. For homes that are more expensive, seller financing can limit the loan amount of the mortgage to a more moderate loan amount, which will help the buyer get a lower interest rate and makes the qualification process simpler. A wrap-around-loan can also be utilized in conjunction with the second mortgage. This means that the seller of the property will continue being responsible for the first mortgage, and the second mortgage will be given to the buyer for payment. Seller financing has advantages for both the seller and the buyer.
This lets both parties involved to work out the interest rate and the repayment of the loan. The seller will most likely receive a monetary offering for their assistance in getting the buyer financed, which usually will come in the form of a slightly higher price for the home. The seller will have the choice to sell the mortgage note to another for an amount specified as it will build cash value.
Creative financing loans are excellent ways of obtaining property without dealing with to many financial institutions. Just make sure that you always do your homework on the property,home,home owner, and any previous histories that might hinder the progress of your financial arrangements.
by: Jay Leo
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