Owner Financing

Income - Generally you will need income of about 3 times the monthly house payment including tax and insurance.  We will not know for sure until you have filled out an application and provided proof of income.  We can usually review an application and get you an answer within 1 business day.

Down Payment - The down payment is usually between 5-10%.  If you have enough income and 10% down, you will generally qualify.  If you have 5% down, then other factors will come more into play.  

Other Terms - IR 9.99% currently (usually 6.5% above prime), 9.99% APR, $0 origination fee, 30 year fixed.  $35/m servicing fee.

When you owner finance that means the owner of a house is selling it to you and also providing the loan.   The deed transfers to the buyer and the lender (seller) will take a lien on the house to secure the loan.  

Owner financing is not the same thing as rent-to-own or a lease option.  With lease option or rent to own, the deed does not transfer and you would be a tenant as opposed to owning the home.  There may be certain circumstances that you have to meet in order to purchase the home at a later date.  These usually give you the option to purchase but you would still have to qualify for a loan and you often have to purchase the property within 3 years or it could turn into a standard lease.  

• Build equity instead of paying rent and having nothing to show for it.
• You own the house and don't have to ask permission to make changes to the house from a Landlord.
• If the house goes up in value you benefit, not the landlord.
• You dont ever have to worry about rent going up.  Your loan is fixed for the entire term.  The only thing that can go up is tax and insurance.
• May be able to write off mortgage interest and property tax if you itemize deductions on your tax return.
• If you get behind it is harder to get kicked out of the house.