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, is owner financing a good idea for the seller in Dallas? 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) in order to get a loan. The buyer is typically required by the bank to make a down payment on the home at closing, and then the buyer will make regular monthly mortgage payments to the bank until the borrowed amount is paid in full.
This is the most common way that buyers purchase homes. But there’s another way to sell your house that you might not even 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. Then the ownership of the house transfers over to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Dallas
Many sellers find owner financing to be a great idea.
- They like that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing like self-employed small business owners, etc)
- They like getting monthly cash flow from the finance payments
- They like still owning the house and are protected should the seller stop making payments
- They like not having to deal with property management because the buyer isn’t renting the house. It’s completely different.
What’s not to love? You get ongoing cash flow and have the protection of being in a contract with the buyer, and you’re still able to sell your house all at the same time. 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.