“Understanding Owner Financing”

“Understanding Owner Financing”

 

 

 

 

I’m curious if you have any insight on owner financing a home? A proposal from my current landlord to owner finance a home he is trying to sell, I have some worries since I don’t know the first thing besides reading up on it prior to this email. I ran across your name in a google search and figured I’d reach out.

The home is in South Windsor, CT. I was recently pre qualified for a USDA loan, due to an oversight on my part my score had dropped below what they were willing to use. We switched mobile carriers and didn’t pay the final remaining balance. It was sent to collections which is when we realized our error. It’s paid and I’m currently trying to get it removed with no luck so far. But that’s the back story.

My worry is that I don’t want to get screwed in the long run. I know that the interest rate is usually higher than an mortgage would be. So most of the payment I make wouldn’t be going towards the principle. Is it worth owner financing right now?

 

 

There is nothing wrong with owner financing when all documents are reviewed by legal counsel and the terms are within reason compared to what is available through a mortgage company like ours.

 

I have coached my clients through the process. When available it can definitely be a viable option.  

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 2 commentsJoe Petrowsky • October 14 2020 02:49PM

Comments

If anyone have questions on owner financing, they can contact me and I will gladly share what I know. A good part of my business is owner financing whether its note & mortgage if the seller doesn't have a mortgage or don't wnat to transfer the deed at this time, or any other owner/seller financing methods like Lease purchase, loease option or Land contracts (Contract for deed as they are called in some States)

Posted by Sham Reddy CRS, CRS (H E R Realty, Dayton, OH) 11 days ago

Good morning Joe. I once sold a home with owner financing to a couple that could not conventionally qualify. Once they could qualify, they sold the home and wer able to move up. It works when everyone in on the up and up. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 11 days ago

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