My husband and I have done both owner financing and traditional mortgages. Be sure to do your own due diligence, I’m not a lawyer and can’t be held liable if things don’t work out well for you.
That being said, owner financing opens doors for people with no credit and poor credit, depending on who is offering it. The company owner financing Berry Cottage looked at our payment history instead of our credit score.
It also allows buyers to purchase homes and land that a bank may not finance. Very few banks would have financed Berry Cottage because it had some issues when we first bought it. We were able to get a lot done for very little money, thanks to friends and family, but a bank wouldn’t have looked at that.
You can negotiate better terms some times. We put $1,000 down, we don’t pay any interest, and our loan term is only for three years. Then the financing company pays all of the closing fees. There isn’t a bank anywhere that will do all of that.
Before you sign a contract to owner finance anything be sure to read the contract and hire a lawyer to look it over. If you go through a company do some digging into their history and look for reviews. It can be harder with an individual, but try. If something doesn’t feel right then walk away.
With Berry Cottage we paid for the deed and the property map to make sure things added up. To be honest, it seemed to good to be true. Everything checked out and the contract was so simple that I had my skeptical parents read over to see if we missed anything. They agreed that we needed to proceed quickly. It’s almost been a year and I can’t say enough good things about the company we’re buying Berry Cottage from.