If you’ve been looking to purchase land or any sort of real estate, there’s a pretty good chance you’ve seen or considered owner financing. While not as common as traditional financing, seller financing is a great option for some buyers. How does the process work? Let’s break it down:

What is Owner Financing?

Just like it sounds, instead of getting a traditional mortgage from a bank – the owner finances the purchase.

Much like a traditional loan, an agreement will be drawn up by the buyer and seller that outlines a payment schedule, interest rate as well as the consequences in case of default.

Basically, the owner acts as the bank. The buyer sends in monthly payments to the owner, and the owner collects interest on the loan. While some are typically on 5 years or less terms and have additional fees, here at Instant Acres, we allow longer terms of 15 years without any sort of balloon payments or prepayment penalties.

Advantages of Owner Financing:

There are numerous advantages to owner financing for a buyer, including:

• Lower closing costs, due to no dealing with a bank. You typically avoid appraisal costs and bank fees which usually results in a better overall price.
• Since you’re dealing directly with the seller you will most likely have a much lower down payment than the standard minimum % down.

While owner financing may be uncommon in real estate it is typically more available when purchasing land since mortgages for investment property can be harder to secure.

Interested in Owner Financed Land?

For nearly 20 years we’ve provided instant owner financing for buyers all over the world allowing them to acquire the property of their dreams! View all of our available listings here!