No Money Down Mortgages Available With Seller Financing
The concept of seller financing has caught on quite fast and is very beneficial to those who are planning to buy their first Dallas investment property. It also helps those people who are unable to get a loan from the normal or traditional route. One does not have to deal with financial institutions and since the interest rates are low, you would find that it facilitates investment property purchase. It is possible to even refinance and sell as well as build credit while refinancing for lower payment. Sellers are able to take the 30 year rate and put a spread on it. Given the current real estate market sellers have made seller financing widespread and regular so the process has become quite standardized too.
Sellers want a fast closing with little hassle. Sellers also want to pay as little taxes as possible on the gains incurred. Sellers are anxious to sell; and in a sluggish real estate market, owner-financing is an attractive alternative to losing money while properties sit vacant. Otherwise, homes can remain on the market for years with owners either making mortgage payments out of pocket or renting. Sellers may consider 100% owner financing or partnering with the right buyer of Dallas investment property for a win/win outcome.
Seller financing can give sellers the advantage they need to overcome a key purchasing hurdle, opening their property up to more potential buyers. Sellers and their agents often express the attitude that the Buyer's financing is the Buyer's problem, not theirs. Perhaps, but facilitating Buyer's financing should certainly be of interest to Sellers. Sellers can also contribute up to 6% of the sales price to help cover closing costs. This allows many 1st time home buyers (or seasoned investors) to purchase a home with little or no money down.
Seller financing presents very little, if any, problems. The seller doesn't have to pass the rigors of a lending institution, nor does the buyer. Sellers will typically finance 50 to 60 percent - or more - of the selling price, with an interest rate below current bank rates and with a far longer amortization. The terms will usually have scheduled payments similar to conventional loans. Sellers must know when they list their property for sale that the master association for their property must also qualify in order for a buyer to be able to get a loan. The Rules and Regulations, By-Laws, budgets, insurance policies, everything, are subject to review by lending underwriters, so be aware of conditions while exploring investment property.
Another example of seller financing is the seller's mortgage is transferred to the buyer and the loan extended is in the seller's name. The ownership of the property is transferred to the buyer when the sale deed is signed by the seller. Sellers also would like to avoid huge tax liabilities on their Dallas investment property and are certainly not keen on waiting for huge periods of time like thirty years or so to get some return on their investment property. All of these needs can be met by means of installment sale rather than a conventional sale. - 23305
Sellers want a fast closing with little hassle. Sellers also want to pay as little taxes as possible on the gains incurred. Sellers are anxious to sell; and in a sluggish real estate market, owner-financing is an attractive alternative to losing money while properties sit vacant. Otherwise, homes can remain on the market for years with owners either making mortgage payments out of pocket or renting. Sellers may consider 100% owner financing or partnering with the right buyer of Dallas investment property for a win/win outcome.
Seller financing can give sellers the advantage they need to overcome a key purchasing hurdle, opening their property up to more potential buyers. Sellers and their agents often express the attitude that the Buyer's financing is the Buyer's problem, not theirs. Perhaps, but facilitating Buyer's financing should certainly be of interest to Sellers. Sellers can also contribute up to 6% of the sales price to help cover closing costs. This allows many 1st time home buyers (or seasoned investors) to purchase a home with little or no money down.
Seller financing presents very little, if any, problems. The seller doesn't have to pass the rigors of a lending institution, nor does the buyer. Sellers will typically finance 50 to 60 percent - or more - of the selling price, with an interest rate below current bank rates and with a far longer amortization. The terms will usually have scheduled payments similar to conventional loans. Sellers must know when they list their property for sale that the master association for their property must also qualify in order for a buyer to be able to get a loan. The Rules and Regulations, By-Laws, budgets, insurance policies, everything, are subject to review by lending underwriters, so be aware of conditions while exploring investment property.
Another example of seller financing is the seller's mortgage is transferred to the buyer and the loan extended is in the seller's name. The ownership of the property is transferred to the buyer when the sale deed is signed by the seller. Sellers also would like to avoid huge tax liabilities on their Dallas investment property and are certainly not keen on waiting for huge periods of time like thirty years or so to get some return on their investment property. All of these needs can be met by means of installment sale rather than a conventional sale. - 23305
About the Author:
Roy Owens is an investor who uses Dallas real estate to make a living. He also helps individuals with tips on investing.
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