The Austin real estate market is a very thriving and good market to be in when looking for a home. Sometimes when someone goes to buy a home for the first time or even if they have bought one before, there can be some problems with financing. That’s why many real estate companies have started offering special deals to help get people financed and into a home. One of these things is owner financing, which can make it easier for anyone to get financed and into a home that they have always wanted. (What is Owner Financing?)
Owner financing is a good idea if you are someone who knows your credit score just isn’t good enough to get a home loan on your own. The way owner financing works is that the party that owns the home will hold on to a real estate lien note as promise to pay from the buyer and the deed will transfer in to the buyers name. The existing mortgage will remain in the sellers name as in the State of Texas, deed conveys ownership… Not the mortgage. The buying party will pay monthly payments to the selling party so that the original loan can be paid. This is done very much like a rent to own scenario but has a few differences. In a rent to own situation, the buyer still pays a monthly payment but only a fraction of that payment goes towards the base price of the house. Also, with rent to own and lease option, you are not getting the deed at closing and are basically just a glorified tenant. When you have an owner financing situation on the other hand, every payment you make is going towards building equity in the home YOU own and the only way the home can be taken from you is if you default on your loan.
So when someone does an owner financing with a home, they are much better off than if they were to rent to own. Instead of being a tenant you can basically own the house without having the loan having to be put in your name. It is like the original owner is the bank that you are financing your home through and all you have to do is pay monthly payments. Almost anyone can get an owner financed home if you have a sufficient down payment and can make the payments. It doesn’t even matter what your credit score looks like. (How Much Down Payment Needed for Owner Financing – VIDEO)
This type of buying and selling is great in the Austin real estate market or any other market out there. There is even owner financing that can be available on Austin luxury real estate and any other luxury real estate. So you can even purchase a really nice home that you have always dreamed of, if you have the money for the monthly payments. Austin luxury real estate owner financing can be a nice way to get a nice home without having to get financing through a bank on your own. (Search Owner Financed Luxury Homes.) Owner financing can be a great way to purchase a home and is worth looking into if you are unable to qualify for a bank loan and want to purchase your very own home.