Home Buying Advice - Seller Financing
If you can't quality for a mortgage, then maybe a seller financed home is something for you.
Now and again especially in slower markets the seller may offer/accept seller financing. This is where the seller provides a second mortgage to help the buyer purchase the home. This means that people who could not normally afford the home, now have a mechanism by which they can complete the purchase. It can also save the buyer some money by reducing the percentage borrowed from the lender and thus avoiding mortgage insurance.
The terms under which the seller financing will be implemented should be specified in the offer. Please also note that the mortgage lender must be made aware that a second mortgage is to be used, and this may introduce addition requirements by the lender.Return to Home Buying Advice