If you or someone you know are thinking about selling your house and you’re wondering what options you have, perhaps you have heard of something called “seller financing” (also called “owner financing”). Owner financing is a little-known but very effective way to sell your house. And maybe you’re wondering, is owner financing a good idea for the seller in Cincinnati? That’s a great question and we’ll talk about it in this blog post…
Here’s How Owner Financing Works
In a typical home-selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full.
This is the way most people are familiar with buying and selling. But wait! There’s another way to sell your house that you might not be aware of. It involves owner financing!
With owner financing, everything is similar except one – the seller of the house acts like the bank: the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid off. Then the ownership of the house transfers to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Cincinnati
Many sellers think owner financing is a great idea. Here are some perks:
- A larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
- Monthly cash flow from financing payments
- They still own the house and are protected, should the seller stop paying
- No property management
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you.
If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.