Many people look for owner-financed homes in Florida for a variety of reasons—and one of the most common is that it’s tough to get traditional financing from a big bank.
What Are Owner-Financed Homes in Florida?
Owner-financed homes are houses that the owners sell by letting buyers “borrow” and “repay” the money it would cost to purchase.
Here’s how it works:
- The seller and buyer execute a promissory note that outlines an interest rate, a repayment schedule, and what happens if the buyer doesn’t make the payments. These things can vary widely, but because a seller and buyer are working together with no middleman, many of the terms are negotiable.
- The buyer sends mortgage payments to the seller, and the seller typically earns interest on it (and that interest may be higher than the buyer would pay by borrowing from a traditional lender).
An owner financing agreement is usually a short-term agreement. In many cases, the term of the loan is five years—and the buyer will need to make a balloon payment for the rest of the loan at the end of the term. Ideally, that gives the buyer enough time to build up his or her credit enough to secure traditional financing (a mortgage from a bank, for example).
Are You Looking for Owner-Financed Homes in Florida?
If you’re trying to find land for sale in Lake City or a home for sale in Lake City (or the surrounding communities), we’d be happy to help.
Call us at 386-243-0124 or contact us online to tell us what you’re looking for; we’ll start searching right away.Lake City Owner Financed Home Sites