Types of Buyers Involved in Owner Financing Homes

As trends in the real estate market change, more and more buyers are choosing not to work with a real estate agent or traditional mortgage lender. Instead, many of these men and women decide to enlist the help of an escrow service and seek out properties that offer owner financing options. For Sale by Owner homes are quite common and offer a number of advantages to buyers in unique situations which would otherwise prevent them from securing a mortgage through a bank or loan agency.

When it comes to owner financing homes in Albuquerque, Sunwest Escrow knows that these properties will fly off of the market fast. If you are looking to purchase a new home, or if you are a seller hoping to finance your prospective buyer, we believe that all parties should know which types of buyers are typically involved in owner financed homes.

Types of Buyers Involved in Owner Financing Homes

Four of the most common buyers that choose owner financed homes include:

• Buyers who cannot qualify for a mortgage through a bank. These individuals may be self-employed and cannot provide steady income or have a new job which prevents them from providing documents that meet lender guidelines.
  
• Buyers who want a fast closing. One of the benefits of owner financed homes is that neither party needs to wait through a long closing period with a third-party lending office. Often, the buyer can move into the home within days of the transaction being finalized.
  
• Buyers who do not want to pay substantial loan costs. Another benefit is that the costs for owner financed homes rarely add up to the fee charged by conventional mortgage lending agencies. Buyers can save potentially thousands of dollars simply by choosing owner financing.
  
• Buyers who have a low credit rating. Even though the buyer with a low credit rating may choose an owner financed home because they cannot secure one through the bank, this also helps them establish and build their credit as they make monthly payments to the owner.

To learn more about owner financing homes in Albuquerque, contact Sunwest Escrow today.