Many people around the nation throw in the towel when they cannot land a mortgage. But failing to get a traditional mortgage is not the end of the road for individuals looking to own land and/or a home.
You have options; options that, surprisingly, few people know about. You have the option of owner financing.
For over 25 years, your experts here at Santa Cruz Properties have made people’s dreams of owning land come true. Don’t settle for renting for the rest of your life. Take that first step and call us today for more information on our owner-financed lots.
If owner financing isn’t something you are overly familiar with, or if you’re still unsure whether or not owner financing is a safe option for you, consider the following.
What is owner financing?
If you’ve just stumbled upon our humble little blog, or if you need a little refresher, owner financing is when the seller carries the mortgage. This means that the seller is financing the property.
For instance, if you were selling land to a buyer that couldn’t get a bank loan, you – as the owner – become the bank in a sense. You initially carry the financial costs in order to make the sale of the property easier for the buyer. Then, the buyer and the seller create a promissory note or land contract that details the interest rate, repayment schedule, and the consequences of default.
At Santa Cruz Properties, we have plenty of owner-financed lots available for those of you who are eager to finally have a place to call their own. While the banks may need to run a credit check to see if you have perfect credit, we don’t have to.Overall, 97,089 owner financed notes were created in 2016. #SantaCruzProperties Click To Tweet
Is owner financing risky? Why aren’t more sellers doing it?
To sum it up, the reason why owner financing is so uncommon is because hardly anyone has heard of it, and sellers that have heard about it either think that they don’t have the money to lend to a buyer or that it is too risky.
But where sellers falter, you – the buyer – benefits. Those benefits include:
- Little to No Qualifying – In the scenario where a seller would require that the potential buyer submit a credit report, chances are that they will be less strict and more flexible than other financing sources.
- Faster Closing – There are no long waiting times like you would experience working with a bank, trying to get a loan from a bank loan officer, underwriter, or any legal process to approve your application.
- Faster Possession – Because of the absence of time-consuming processes, buyers don’t need to wait for them to clear in order for them to begin working on the property.
- Closing is Cheaper – There are no applicable bank fees or appraisal costs through owner financing.
- Flexible Down Payments – There are no bank or government required minimums.
All things considered, when it comes to owner financing, for buyers, it is a safe option if you cannot secure a loan from any other source.In 2016, #Texas, #California, & #Florida were the top 3 producing states for owner financing. #StartYourLegacy #SantaCruzProperties Click To Tweet
Call or visit our website for more information on some of our great owner-financed lots that we have available today!
Don’t let uncertainty keep you from diving into one of our owner-financed lots. You, too, can be a landowner.
For more information on what we have available, contact us today at (956) 383-0868!