Buying a home with seller financing can be a great idea – as long as you and the seller can reach an agreement that works out in your favor. But it can also be a little bit confusing. If you’re considering buying an owner-financed home in Lake City, check out these common seller financing questions. If you don’t see the answer you’re looking for here, feel free to call us at 386-243-0124 and talk to an experienced REALTOR® who can help.
Common Seller Financing Questions
These are some of the most common seller financing questions we hear:
- Can I sell my owner-financed home?
- Who holds title in seller financing?
- What are the risks of seller financing?
- Is owner financing like rent-to-own?
Here’s a closer look.
Can I sell my owner-financed home?
You can sell an owner-financed home in many cases. However, you’ll have to make sure that there’s no lockout clause or prepayment penalty in the financing.
Who holds title in seller financing?
When you buy a home with seller financing, you sign a promissory note that says you’ll repay the loan from the seller. You also sign a mortgage or a deed of trust, which allows the seller to foreclose on you if you don’t make your payments. The seller signs a deed that transfers the house’s title to you.
What are the risks of seller financing?
There are a handful of risks for buyers in seller financing. You may face unfavorable loan terms, you’ll most likely have to come up with a lump-sum payment within a few years of the initial transaction, and you may lose the house if you fail to make just one payment. There are other risks that depend on the type of agreement you signed, as well.
Is owner financing like rent-to-own?
Owner financing is a little bit like rent-to-own, but the big difference is that you buy the property outright without going through a lender or bank. With “rent-to-own,” you have the option to decide to buy after you’ve rented the property for a while.
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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