No Money Down Mortgages Available With Seller Financing
The concept of seller financing has caught on quite fast and is very beneficial to those who are planning to buy their first Dallas investment property. It also helps those people who are unable to get a loan from the normal or traditional route. One does not have to deal with financial institutions and since the interest rates are low, you would find that it facilitates investment property purchase. It is possible to even refinance and sell as well as build credit while refinancing for lower payment. Sellers are able to take the 30 year rate and put a spread on it. Given the current real estate market sellers have made seller financing widespread and regular so the process has become quite standardized too.
There are some concerns and objectives that sellers have. For one, sellers want to sell off their property fast and without much trouble. They also want to pay fewer taxes on gains. It is quite possible that in a slow market, Dallas investment property may remain unsold for years which also prompt sellers to be quite concerned about selling. If the property lingers for too long, owners would have to make mortgage payments on their own or by giving it out on rent. This is where sellers may look at owner financing which is 100% or maybe partner with a buyer for use as investment property.
When sellers offer seller financing to buyers, they in effect make it easier for buyers to purchase the property thus enhancing buyer interest. In these times, sellers should be helping buyers buy the property which is in sharp contrast to the opinion expressed by some sellers that financing shouldn't be a seller's concern. There are cases where sellers help in contributing 6% of the sales price which facilitates first time buyers' completion on the sale of their first investment property.
One of the key advantages of seller financing is that sellers and buyers are spared the rigors of dealing with a financial institution and hence there are hardly any problems in facilitating the sale. In the normal course, buyers can get as much as 50-60% financing, with a lower interest rate and a much longer amortization period. But the sellers must be aware of various rules and regulations like by-laws, insurance policies and budgets and also rules and regulations which could be reviewed by lending underwriters. There has to also be a knowledge that the property's master association should allow a sale in the first place, or else the sale cannot occur.
Another example of seller financing is the seller's mortgage is transferred to the buyer and the loan extended is in the seller's name. The ownership of the property is transferred to the buyer when the sale deed is signed by the seller. Sellers also would like to avoid huge tax liabilities on their Dallas investment property and are certainly not keen on waiting for huge periods of time like thirty years or so to get some return on their investment property. All of these needs can be met by means of installment sale rather than a conventional sale. - 23162
There are some concerns and objectives that sellers have. For one, sellers want to sell off their property fast and without much trouble. They also want to pay fewer taxes on gains. It is quite possible that in a slow market, Dallas investment property may remain unsold for years which also prompt sellers to be quite concerned about selling. If the property lingers for too long, owners would have to make mortgage payments on their own or by giving it out on rent. This is where sellers may look at owner financing which is 100% or maybe partner with a buyer for use as investment property.
When sellers offer seller financing to buyers, they in effect make it easier for buyers to purchase the property thus enhancing buyer interest. In these times, sellers should be helping buyers buy the property which is in sharp contrast to the opinion expressed by some sellers that financing shouldn't be a seller's concern. There are cases where sellers help in contributing 6% of the sales price which facilitates first time buyers' completion on the sale of their first investment property.
One of the key advantages of seller financing is that sellers and buyers are spared the rigors of dealing with a financial institution and hence there are hardly any problems in facilitating the sale. In the normal course, buyers can get as much as 50-60% financing, with a lower interest rate and a much longer amortization period. But the sellers must be aware of various rules and regulations like by-laws, insurance policies and budgets and also rules and regulations which could be reviewed by lending underwriters. There has to also be a knowledge that the property's master association should allow a sale in the first place, or else the sale cannot occur.
Another example of seller financing is the seller's mortgage is transferred to the buyer and the loan extended is in the seller's name. The ownership of the property is transferred to the buyer when the sale deed is signed by the seller. Sellers also would like to avoid huge tax liabilities on their Dallas investment property and are certainly not keen on waiting for huge periods of time like thirty years or so to get some return on their investment property. All of these needs can be met by means of installment sale rather than a conventional sale. - 23162
About the Author:
Roy Owens is an investor who uses Dallas investment properties to make a living. He also helps individuals with retirement investing.
posted by X - Men @ 4:31 AM
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