Is Seller Financing the Right Deal for You?

Written by Posted On Monday, 11 September 2017 08:21
Owner Will Carry Financing could be right for the buyer and seller, yet not many close. Owner Will Carry Financing could be right for the buyer and seller, yet not many close.

Also referred to as the seller financing or creative financing, Owner Will Carry Financing is an agreement where a buyer finances the acquisition of property through finance advanced by the seller.

The amount advanced to the purchaser is included in the purchase price.

Normally, this option is more suitable to a buyer who cannot get funding from conventional financial institutions.

Typically, it happens if the property in question is free of any mortgage or if the buyer’s down payment is enough to clear an outstanding mortgage.

However, if the seller has an existing mortgage, the seller’s current financier must be made aware of the transaction.

How does Owner Will Carry Financing Work?

Typically, the seller extends enough credit for the price of the home excluding any down payment.

The two parties then sign a promissory note that states the terms of credit.

They are then required to sign a mortgage or “deed trust” depending on which state the agreement is undertaken.

The buyer is expected to pay back the loan plus the interest within the stipulated period.

If a seller has a junior loan, the buyer may take title subject to obtain a first mortgage or the existing loan.

The buyer is given the deed; s/he then issues the seller with a second mortgage for the difference on the purchase price after deducting the down payment and the first mortgage amount.

However, it’s good to note that Owner Will Carry Financing loans are typically short term.

That’s because sellers, unlike financial institutions, may not be patient to wait for twenty years or more for the loan to be repaid in full.

However, they may be amortized for the 20 years if there is a balloon payment at the end.

This is especially possible if the property is projected to gain value over time or the buyer is in a position to get financing from traditional lenders to refinance the purchase.

Types of Owner Financing

Below are some of the various types of Owner Will Carry Financing:

Lease Purchase Agreements – Buying a house on lease purchase means that the buyer is given equitable title through the lease. Upon fulfillment of the agreement, the buyer is issued with a title and can source for a loan to pay off the seller.

Land contracts– The buyer is given an equitable title and is expected to make payments to the seller for a particular period. Once the final payment is made or the buyer gets a refinance, the seller is then required to transfer the deed.

Mortgages and promissory notes – A seller may decide to carry a mortgage for the balance of the purchase price. In some cases, this may include an underlying mortgage price that will be less than the down payment paid. Such financing is referred to as “all-inclusive mortgage” for which the seller is granted an override on the interest of the underlying loan.

Here’s a few Owner Will Carry Properties in Las Vegas for your review.

Read More about Seller Financing

Rate this item
(0 votes)

Contact Us

img src="" srcset=" 768w, /Lori Ballen is a licensed agent with a real estate team licensed with Keller Williams Realty Las Vegas. When you choose Lori Ballen Team, you get skilled Real estate agents who specialize in particular niches, and geographic locations. Always in the top 1% of Las Vegas production, Lori prides herself on the continuing education and high level training she and the team members receive.

Lori is known in the real estate industry for her digital marketing skills. She’s a top requested trainer who shows real estate agents how to market their seller’s listings for the most exposure which could lead to higher offers. Lori’s specialty is search engine optimization which might be just how you found this website.

You’ll find Lori Ballen Team real estate agents in Las Vegas, Henderson, North Las Vegas, Boulder City, Pahrump, and even in Reno. She’s recently begun working in other markets across the nation helping sellers get their homes sold for the most amount of money possible in the least amount of time possible and with the least amount of inconvenience. The buyer agents who work with Lori love being out and about previewing the latest inventory. They work with you to find a resale or a new home. That’s right. If you are considering new construction, reach out to us first. You can have your own representation and most of the time the builder pays the buyer agent commission so you have no more expense.

What's Your Home Worth?
Use our instant home value calculator to get an estimate of what your house might sell for today.

The listing specialists working with Lori know how to sell a property. They will bring all of the necessary data to help you determine what your house might sell for in the current market. No punches are pulled. It’s all in the numbers and then in the marketing for top exposure. That’s what Lori’s team does best.

When you work with Lori Ballen Team at Keller Williams Realty, you won’t feel lost in the shuffle. It’s a team and everyone cares that you reach your goal. Nobody wins if you don’t win, so you are first.

Give us a chance to show you why Lori Ballen Team is the right choice for your real estate needs.

Keller Williams Realty Las Vegas
Address: 9420 W Sahara Ave #100, Las Vegas, NV 89117
Text us! 702-604-7739

How much will it cost to sell a house? How to Sell Your House Fast Instant Automated Home Value Estimate
Send us an email at, or call or text 702-604-7739 to schedule an appointment ot have one of our expert real estate agents about selling your house.

Agent Resource

Limited time offer - 50% off - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.