If you’re thinking about selling your house and you’re wondering what your options are, perhaps you’re exploring something called “seller financing” (also called “owner financing”). Owner financing is a little-known but very effective way to sell your house. And maybe you’re wondering if owner financing is a good idea for the seller in Boston? That’s a great question and we’ll talk about it in this blog post.
Here’s How Owner Financing Works
In a normal home-selling transaction, the buyer, who doesn’t have ALL of the money for a house, goes to a lender (such as a bank) and pays a down payment. The buyer then makes regular monthly mortgage payments until the borrowed amount is paid in full.
This is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of and it involves owner financing.
With owner financing, everything is similar except this one thing – the seller of the house acts like the bank. The buyer pays a down payment to the seller and then makes regular payments, just like mortgage payments, to the seller until the house is paid in full. The ownership of the house then transfers to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Boston
Many sellers find owner financing to be a great idea.
- There is a larger group of potential buyers to sell to. This is including those who might not qualify for traditional bank financing.
- They recieve monthly cash flow from financing payments.
- The seller still owns the house and is protected, should the seller stop paying.
- They like that there is no property management.
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you.
If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.