Owner finance, also known as seller financing or creative financing, is a real estate transaction where the property’s seller directly finances part or the entire purchase for the buyer. This arrangement offers advantages to both sellers and buyers by eliminating the need for a bank intermediary, thus reducing associated costs. Typically, the availability of owner financing is disclosed in property advertisements.

Owner financing entails the seller taking on the risk of buyer default, but it often leads to more flexible negotiations compared to traditional lenders. Additionally, it can generate extra income for the seller in the form of interest. In certain circumstances, owner financing has been known to expedite property sales, especially in a buyer’s market.
What are the requirements for owner financing?
To qualify for owner financing, a written agreement between the buyer and seller sets out the financing terms. Owner financing arrangements can be intricate, so both parties should seek legal advice and consult experienced real estate professionals to comply with local regulations. The Property Attic is a reputable US real estate company offering free advice on owner financing. Remember, the specific owner financing requirements can differ based on the buyer-seller agreement, so thorough review and negotiation are essential to meet both parties’ needs.
We Have owner-financed homes for sale. Available For You! Regardless Of Bad or NO Credit.
Owner financing is a great way to get into a home when bank financing just won’t work. Learn more…
If you’re tired of renting, and you want to own a home in Texas, Alabama, Georgia, or Florida but your credit, lack of down payment, or income is holding you back from qualifying for a normal bank loan. We can help you!
We specialize in helping residents become homeowners through our Owner Financing Program. This means there are no banks involved.
If you can’t secure conventional financing, no worries! The Property Attic offers great homes in and around Texas, Alabama, Georgia, and Florida.
We are an alternative to buying a home the traditional way. You do not need to have perfect credit and we offer payments to fit your budget.
You are not renting the property or renting to own. You are buying it without the bank.
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*These are not on the MLS - Available properties on the next page.What Are The Types Of Homes We Offer With Owner Financing?
Our local owner-financing homes are move-in ready, in good neighborhoods, and often freshly updated. Inquire with us on this site for available properties.
We are a local real estate company that offers our properties to deserving families with a reasonable down payment and the ability to pay a monthly payment comparable to rent.
The types of houses we tend to offer on our Houston Owner Financing Home Program include…
- 2 bedroom – 4 bedroom homes
- 1,400 – 2,500 square feet
- Updated kitchens and bathrooms
- Often times many upgrades
Each home is different, so there’s definitely the perfect home out there for you.
Our homes range in price from $59,900 to $279,900 and typically require a down payment of $2,000 to $10,000. We have found that this is the best price range to find homes that are in decent neighborhoods where people want to own a home and raise a family.
What are the benefits of owner financing for buyers?
Owner financing offers several advantages for buyers:
- Flexibility in Financing: Buyers with challenging credit or down payment situations can consider owner financing, which provides more flexible financing options.
- Simplified Approval: Owner financing often involves a simpler approval process, potentially leading to a quicker transaction.
- Path to Homeownership: It’s an opportunity for those lacking a substantial down payment to become homeowners while demonstrating financial capability for regular payments.
- Customized Terms: Buyers and sellers can negotiate terms like interest rates and loan duration, possibly resulting in more favorable terms compared to traditional mortgages.
- Cost Savings: Skipping traditional lenders can save buyers on various mortgage-related costs like origination fees and appraisals.
- Expanded Property Choices: Some properties may only be accessible through owner financing, broadening the selection for buyers.
Remember, the specific benefits depend on the negotiated terms, so thorough understanding and review of the agreement are essential before proceeding with the purchase.
Can you give me an example of a successful owner-financed deal?
Certainly! Here’s an example of a successful owner-financed transaction: Let’s consider John, who is selling his house for $250,000. Sarah, the buyer, doesn’t have the funds for a down payment or doesn’t meet the requirements for a conventional mortgage. Instead of involving a bank, John decides to finance the purchase directly. They establish the following terms: Sarah will make monthly payments of $2,000 at an interest rate of 5% over a 10-year period. At the end of this decade, Sarah will have completely paid off the purchase price, and John will have received a consistent income stream from the interest payments. This arrangement is mutually beneficial: Sarah can achieve homeownership without the need for a substantial down payment or mortgage qualification, while John can sell his property and accrue interest income from the sale. It’s important to note that the specifics of an owner-financed deal can vary based on the agreement reached between the buyer and seller.
How do I find properties that offer owner financing?
Discovering owner-financed homes nearby may pose more of a challenge compared to traditional financing options because such properties are relatively less common. Nevertheless, you have several avenues to explore:
Online Property Platforms: Investigate websites such as The Property Attic, Zillow, or LandWatch. These platforms offer listings of properties available for sale with owner financing opportunities. You can tailor your search to match your preferences and employ filters to identify properties offering owner financing.
Engage Local Real Estate Professionals: Reach out to local real estate agents who possess knowledge about properties with owner financing options in your desired locale. They can provide guidance, offer insights, and assist you in locating suitable choices based on your specific requirements.
Remember the importance of conducting thorough research and due diligence before reaching any decisions or engaging in agreements related to owner-financed properties.
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*These are not on the MLS - Available properties on the next page.How Does Our Program Work Anyway?
It’s easier than you think – and we can help. The process is really pretty straightforward.
We finance the property for you with what is called a “land contract” or “contract for deed”. This is very common and every closing is handled by a state-licensed attorney or authorized signing service, just like any other real estate transaction. So you can rest assured that everything is handled professionally.
You will also be responsible for the taxes and insurance just like any other homeowner. We can, however, escrow taxes and insurance for you if you like to help you budget for these expenses. Sometimes it is a requirement for approval.
One of the best things about buying a home this way is that you do not have to deal with banks and qualify based on your credit. You can start building equity right away and stop paying rent.
Step 1: Submit your info on this website to create a FREE account and let us know the type of house you’re looking for.
Step 2: We’ll look at your situation, and the type of property you’re looking for, and show you your options here in Houston.
Step 3: View the local homes that fit what you’re looking for.
We seek to only buy properties that are move-in ready or close to move-in ready. For this reason, we do not typically make any improvements to the property prior to offering it to deserving families. All properties are sold “as is where is”. So it is the responsibility of the purchaser to make any necessary repairs and to inspect the property thoroughly prior to purchase. We recommend getting a home inspection prior to purchase.
Plus, as we acquire new properties each month, as long as you’re on our Owner Financing Home List, you’ll get email alerts with the latest properties available.
What is the difference between owner finance and bank finance?
Sure, here’s the information presented in a table format for better readability:
Aspect | Owner Financing | Bank Financing |
---|---|---|
Funds Source | Seller directly finances the purchase. | Third-party lender (e.g., bank or mortgage company) |
Credit Requirements | Typically more flexible. | Requires a good credit score and stable income. |
Down Payment | May require little or no down payment. | Usually requires a 20% or more down payment. |
Interest Rates | Generally higher interest rates. | Typically offers lower interest rates. |
Loan Terms | Often shorter loan terms. | Offers longer loan terms for lower monthly payments. |
Closing Costs | Lower closing costs, fewer fees. | Higher closing costs, including various fees. |
It’s essential to consider these differences and consult with professionals before making a financing decision.
Can you explain how to calculate monthly payments on an owner-financed deal?
Of course! Calculating monthly payments for an owner-financed arrangement involves considering factors like the principal balance, interest rate, and loan term. Here’s a basic method for determining monthly payments:
- Obtain the current principal balance and interest rate specified in the contract.
- Multiply the balance by the interest rate.
- Divide the result by 12.
For example, if you have a $100,000 principal balance with a 5% interest rate, the calculation would be:
Monthly Payment = (Principal Balance * Interest Rate) / 12
= ($100,000 * 0.05) / 12
= $416.67
Please note that this is a simplified calculation and may not account for factors like balloon payments or amortization schedules. The terms of the owner-financed deal can vary, so it’s crucial to review the agreement and seek advice from real estate professionals for precise calculations.
Feel free to ask if you need further assistance!