Texas Owner Finance Benefits to Home Buyers and Sellers
The face of America’s population is changing by the day. With the onset of many lower-income jobs and the flux of workers in the job force who are making the federal minimum wage, the financial situation of the country’s population has been shifting. Along with this shift comes the inevitable shift in the country’s housing situation. With incomes and housing rates in flux, America’s housing situation has been steadily worsening and may very well reach a crisis point in the near future.
In a country where owning a home is a major status symbol, it is a cause of real concern when a large segment of the population cannot even afford to rent one. Asking a seller to give you owner financing to purchase a home can either be a tricky or an easy proposition. That is partly because if you are to ask the listing agent if the property owner will carry all or some of the financing, the agent probably does not know and this is because the agent never asked.
Sellers on the other hand often disregard the suggestion of owner financing because nobody has make the clarifications on the benefits of the proposed owner financing as a means to sell the home. Most sellers don’t sell a house everyday. Their knowhow is limited to traditional way wherein the buyer goes to the bank in order to get a mortgage. Owner financing becomes a viable and popular option in the buyer’s market as the traditional lender guidelines become close-fitting and the sellers whose houses are selling fast.
There are different types of owner financing, still they are subject to state-specific regulations. Some variations include land contracts, promissory notes and mortgages, and lease purchase agreements. Austin Owner Finance Benefits to House Buyers includes the following: Little or No qualifying, Faster Possession, Down Payment Flexibility, Tailored Financing, Lower Closing costs.
Texas Owner Finance Benefits to Home Sellers are the following: Tax Breaks, Higher Sales Price, Shorter Listing Term, Monthly Income, Higher Interest Rate. Owner financing attracts different sets of buyers. If a property does not sell through conventional ways, owner financing is a sure way to stand out and move difficult-to-sell property that otherwise may not sell. It would be a wise idea to consult a real estate lawyer to obtain a competent legal advice before you enter into any transaction with regards to this method.