Austin Owner Finance or Seller Financing is the term used for someone who is selling their home and is offering potential buyers the option of securing a loan from them to be able to pay off the mortgage. This is a big advantage to homeowners who are looking to sell their homes in today’s present economy, because a lot of buyers are having a hard time securing a mortgage loan from a bank or a lending company because of economic downturn and strict lending guidelines. (See benefits for Buyers and Sellers when using Owner Financing in an Austin real estate transaction here!)
The Austin Owner Finance process is pretty simple. The buyer would make a down payment for the house to secure the sale and would come to terms with the seller on how the remaining balance is going to be paid. Of course, everything is done on binding, legal contracts drawn up by an attorney to ensure that everything is legal and both parties are protected in the sale. A downside to this arrangement on the buyer’s end is that the down payment that he or she would need to make is much higher when compared to the amount that he or she would need to initially shell out if was approved for an FHA mortgage loan by a bank. This arrangement is also risky on the seller’s end, because a financial crisis might arise and they buyer will not be able to pay off his remaining balance.
Austin Owner Finance homes for sale are hard to come by because of many reasons. First of all, one of the top reasons why a person is selling his home is because he needs the funds to be able to purchase a new house or is needed for something important. Another reason is the fact that the seller does not have the money to lend his buyer the amount needed to make a purchase. In these cases, sellers can take advantage of the Austin Owner Finance solution by listing their property for sale with experts such as Forte Properties. Forte Properties has a team of highly skilled real estate professionals that will be able to assist a seller in determining whether they can handle the risks of putting up their home up for sale with Owner Financing. (See our article on Austin Owner Finance vs. Austin Rent to Own)
If you are thinking of putting your home up for Seller Financing, bear in mind that not a lot of buyers are aware that such a set up is possible. This is why you would need to educate them a little about the process and ask them if they are amenable to the terms in case they are unable to secure a mortgage loan from a bank. If you are looking to make a fast sale for your home, this option would be the best way to go because you will be able to lengthen your list of clientele by including buyers who are having trouble getting a mortgage loan from a lending institution. Moreover, because this financing option is rare in the real estate market; your listing will be able to attract more buyers therefore increasing the number of offers for your home.