03/22/2022
The seller becomes the bank 🏦
It can get confusing as it is also called owner financing, seller financing, seller carryback.
These terms just mean that at the end of the day, the owner will be the bank, and sometimes they may have an existing loan that has to be figured out.
The biggest pro of seller financing is everything is negotiable.
There are no set terms, rates, down payments, etc. and it is up to the seller and buyer to decide all terms.
Some other pros on both sides:
-May be able to negotiate little or no money down
-No traditional bank underwriting so may open up more opportunities to qualify
-No limit soldier...you are not capped on how many you can do like a traditional lender who said 10 is my cap on total mortgages
-Faster and easier closing process
-Tax benefits on both sides
-Doesn't show up on your personal credit
Of course there are risks associated, and I'm not your accountant or attorney. Just sharing my thoughts so do your own due diligence.
Have you used seller financing before?!