When anyone is looking to buy a home, looking for real estate in Austin can be a good place to start. Real estate in Austin has a good market so there is a lot available to choose from when you are looking. However, one problem that a lot of people run into when buying a home is financing, which is why many real estate companies are starting to make programs and offer different types financing for those people. One of the main ways that real estate companies get people who are unable to get financed into homes is by owner financing. (What is Owner Financing?)
Owner financing is the perfect thing for people who cant get a home loan whether it is because of poor credit or any other reason. The way owner financing works is that the seller of the home actually transfers the deed to the new buyers, carries back a second mortgage and keeps the current home loan on the house. This is also called a wrap around mortgage. The buyer gets the deed but does not have to get a loan and instead the buyer pays the seller or third party servicing company monthly payments for the home. This sounds much like a rent to own deal with the monthly payments but there are some differences between the two. The first thing is that when you do owner financing it is like you own the house your self rather than you are a tenant. You gain full legal ownership at closing and all of the tax benefits that come along with it.
Another difference is that when you pay the monthly payment on a rent to own property or home only a fraction of that goes to the payment of the house. With owner finance on the other hand, you are paying a loan payment with a fixed interest rate, typically amortized over 30 years, and with each payment are building equity. The fact that you are going through a owner of a home rather than a bank it is a lot easier to get a home that you don’t have to rent. This is why many real estate companies have picked up on this idea and have started using it to sell wonderful and nice Austin homes to people who wouldn’t be able to get them on their own. There are even Austin luxury homes for sale that can be owner financed with the right down payment and income verification.
Owner financing being available on Austin luxury homes for sale means that anyone can get that luxury dream home that they have always wanted without having to deal with a bank. There are many other places besides Austin that offer owner financing that you can look into in the area that you want to move to. Owner financing is great if you find the right owner and the right real estate company for your needs. It can also take the hassle of having to get a loan through the bank of your dream home or property you need. So instead of getting denied for a loan by a bank you can try owner financing to make your home buying experience a lot more stress free.