Reasons to Consider Owner Financing in Albuquerque

Buying or selling a home is usually the most significant investment decision most people will ever consider, which will in most cases involve some financing options. Owner financing is an alternative to traditional mortgages. Owner financing is when a property is sold directly from the seller to the buyer with no finance intermediary like a mortgage lender or bank. Whether you are buying or selling a property, there are many cost-saving reasons to consider owner financing to purchase and sell residential and commercial properties.

Also called seller financing, the owner financing process involves the seller of the property extending credit to the buyer to purchase the property, with the buyer agreeing to make payments directly to the seller until the property is paid in full.

Owner Financing Can Benefit Both Buyer and Seller

Owner financing can be a risky option for both the buyer and the seller, but the potential upsides are worth the risk for many people. Understanding the reasons to consider owner financing in Albuquerque will help prospective property sellers and buyers make the right choices for their particular circumstances.

Whenever participating in such a large purchase, especially without the backing of a bank or other moneylender, both sides should seek legal counsel to make sure the contract is drafted agreeably in the best interests of both parties, on a short-term and long-term basis.

Benefits of Owner Financing for Buyers in Albuquerque

●     Without having to wait for a financial institution to go through the lengthy and complicated application process, owner financing offers a faster closing for buyers.

●     A lack of bank fees and appraisal costs will reduce closing costs.

●     There are no required minimums mandated by a bank or regulations, which means total flexibility for a down payment agreement with the seller.

●     Ideal alternative for buyers unable to secure a mortgage through traditional means.

●     Benefits of Owner Financing for Sellers in Albuquerque

●     Property can sell without costly repairs that a bank would require before approval of a loan.

●     It is a solid return on investment that will outperform other investment opportunities

●     The buyer’s promissory note may be sold for a lump-sum payment.

●     Seller retains the property title. If the buyer defaults, the seller keeps the down payment, any payments made, as well as the house.

●     Avoiding the mortgage process allows sellers to move properties quicker.

 

Property Owners Can Trust Owner Financing in Albuquerque

A valuable tool to use when purchasing real estate, owner financing allows you to buy property without borrowing money through a money lender or bank. Owner financing can save both the buyer and the seller time and money. Both parties come together to agree on the terms of the sale and work out a payment plan until the property is paid off.

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If you are in the market to purchase property and are interested in whether owner financing might be right for you, contact a member of the Sunwest Escrow team today!