Recently there have been numerous articles posted on the web about seller financing for Real Estate. Borrowing money from traditional sources has changed in the past year. Many sellers are using creative financing to sell their property. One financing option now considered by sellers is seller financing.
Seller financing rates are usually less than conventional financing. This is because sellers do not charge loan fees. The interest rate of an owner-occupied loan is up for negotiation. Your agent can contact the lender to figure out the current rate on institutional loans. The Treasury bill and certificate of deposit rates will impact the interest rates of an owner-carried loan. Usually, a seller is not going to carry a loan for a lower return than they would make if they invested their money somewhere else. However, they might consider doing so if it would enable the buyer to purchase the real estate the seller is trying to sell.
The seller does not receive all the money from the sale of the property at the time of closing. However, when a buyer can not qualify for a traditional loan or is having difficulty coming up with the down payment – the seller who provides the financing assumes the risks that a bank or other financial institution would normally assume.
There are costs involved in selling a property. Your mortgage broker should be able to help identify the expenses and estimate the costs. Call James Angelo, Broker Associate and Mortgage Broker to obtain answers to your questions about this complex subject.
Some great websites to obtain more information about Seller Financing for Northeast Florida Real Estate are:
