What is owner financing?

This is a method in which a home buyer pays the monthly mortgage payments to a seller, instead of a bank or a lender. This type of agreement is extremely beneficial for both parties since its direct and very straightforward, but requires a higher level of transparency.

In the primary phase of this exchange, the buyer and the seller agree to certain terms and conditions in order to proceed, involving promissory notes or other legal tools. Here’s where everything is laid out, let’s say interest rates, repayment schedules, what to do in case of default, and much more.

Why is owner financing so effective?                        

It is much cheaper, because there are no bank fees or extra costs.

Down-payment can be way more flexible.              

It can be closed much faster, since there are no loan officers or legal departments in the middle.

Sellers like the owner financing method because it helps them to sell the property a lot faster.

Under the right conditions, owner financing has proven to be very safe, fast and much cheaper than other conventional approaches to home financing. AFTHA is ready to help you in every step of the way, so you can activate this option anytime. 

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