Is Seller Financing Right For You?
Seller financing is an agreement in which the seller handles the mortgage process instead of a financial institution. Seller financing cuts out the middleman and some of the red tape that comes with real estate transactions. The seller is the lender in this type of transaction, this allows the buyer to make payments without the hassle of a loan.
Seller financing is a better option in a buyers’ market however this benefits both the buyer and the seller of the home. Here is some quick facts about seller financing!
Pros for the Buyer!
- Faster Closing Process – skip the bank lines. You won’t have to wait on a loan officer, underwriter or legal department to review and approve the loan application
- Saves Money – no bank fees or appraisal costs
- Seller financing lets people who might not be able to secure a mortgage buy a home
- The down payment is based on an agreement between you and the seller
Pros for the Seller!
- Sell quicker – you have the potential and ability to negotiate to sell the property “as is” without making costly repairs
- Investment! Earning money from the lending process
- Retain the title: if the buyer defaults – the seller keeps the down payment and the house – rather than the bank
Take Aways:
- Working with a real estate agent in addition to a real estate attorney is necessary. They will write the sales contract and the promissory note
- Sellers should (and can) run a credit check
- Buyers should offer a 10% down payment
- Don’t forget about your credit score – it is still important and considered in the transaction
Orange County Real Estate Success 
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