Buyer Advantages – Owner Financed Home Buying – Austin, TX
Advantages for the buyer in an Owner Financed Home purchase.
Despite the elevated buy price and higher interest rate, there are many benefits to a buyer who engages in an installment understanding transaction.
1. Simple Qualification. The buyer, in many cases, likes an installment understanding to conventional financing because it does not require traditional bank income and credit approval. The buyer might have poor credit because of a divorce or current bankruptcy. He might be self-employed and can't establish income. He might be new to his job and can't meet strict lender guidelines.
Even if he could remember for a loan, the rate will be astronomical if he has poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating.
As you can see, there are dozens of reasons why a buyer can't (or will not) remember for a conventional bank loan. The installment understanding becomes the perfect solution for him.
2. Credit Rating. An installment understanding might give the buyer a chance to improve his credit rating by owning a home and making payments timely.
3. No Loan Costs. One of the biggest benefits for the buyer is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-carry installment sale.
4. Fast Closing. A buyer can close and move into a property within days, since there is no third celebration lender holding up the transaction.
