Buyer Advantages – Owner Financed Home Buying – Austin, TX
Advantages for the buyer in an Owner Financed Home purchase.
Despite the elevated purchase price and higher interest rate, there are many benefits to a buyer who engages in an installment sale transaction.
1. Easy Qualification. The buyer, in many cases, prefers an installment sale to conventional financing because it does not require traditional bank income and credit approval. The buyer may have poor credit because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines.
Even if he could qualify for a loan, the rate will be astronomical if he has poor credit. Furthermore, few conventional lenders offer fixed interest rate loans to people with a poor credit rating.
As you can see, there are dozens of reasons why a buyer cannot (or will not) qualify for a conventional bank loan. The installment sale becomes the perfect solution for him.
2. Credit Rating. An installment sale may give the buyer a chance to improve his credit rating by owning a home and making payments timely.
3. No Loan Costs. One of the biggest benefits for the buyer is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other “junk” fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-carry installment sale.
4. Fast Closing. A buyer can close and move into a property within days, since there is no third party lender holding up the transaction.
Forté Properties is a full service real estate company that specializes in Owner Financed homes in Austin, TX and surrounding areas. We know how important the decision is when you have to choose professionals for various needs in your life; we take helping people like you who want to purchase a home very seriously.
We have a team of professionals in various facets of the real estate market dedicated to assisting you with whatever your real estate needs may be. Our customers are at the heart of what we do, and we are committed to finding your perfect home, based on your preferences, in a timely manner, for the best price possible.