Did you know that when you sell your home or a property you own, you have the option of becoming the buyer’s financer? While this may not be in all situations, there are times when it might make sense to take advantage of owner finance loans. At Quick Lending, we are qualified hard money lenders Houston and can help you become an owner financer if that’s what you want to do in a particular situation. Before making an important decision, it’s wise to learn as much as you can about how owner financing works.
How Owner Financing Works
For many, the purchase of a home is the largest investment they make in their lifetime. Due to the size of this purchase, most people don’t have the cash to pay for one outright. That’s why financing is almost always necessary. We are hard money lenders Houston, TX, and can offer you an owner finance loan so you can become the financer if you want.
Owner financing happens when the buyer finances their new home purchase through you as the seller. Chances are, you don’t have enough money to finance the home outright. That’s where owner finance loans come in the picture.
You may want to offer owner financing if the buyer of your home or property doesn’t qualify for a traditional mortgage or, you may agree to lend the buyer an amount above and beyond the mortgage amount approved by the bank. This may be the best scenario if you and the buyer agree on a price, but the buyer can’t get a mortgage loan for the entire cost.
Benefits of Owner Financing
There are a variety of benefits associated with owner financing. They include:
- Faster closing times
- You can sell a property “as-is” without being required by a lender to make costly repairs
- You get to retain the title if the buyer defaults on the loan. Then, you keep the down payment and any other payments made toward the house
- You can sell the promissory note to an investor and receive a lump sum of money immediately
- You can potentially make more money on interest as an owner financer than you would investing your money in other things
These are reasons why you may want to check with hard money lenders Texas about getting an owner finance loan.
Drawbacks of Owner Financing
There are some potential drawbacks of owner financing that you should know about before asking for an owner finance loan from hard money lenders Houston. Here are a few of them.
- You can’t guarantee that the buyer will continue making payments. If they stop paying for the home but don’t walk away, you may be forced to go through a foreclosure.
- If you end up taking the property back, you may need to pay for maintenance and repairs if the previous owners didn’t take good care of it.
Despite these drawbacks, many people still find it worthwhile to get owner financed loans from private money lenders.
Learn More About Owner Financed Loans
Are you interested in learning more about owner financed loans when you sell your home or property? At Quick Lending, we are respected hard money lenders Houston who can provide you with the funding you need to make your unique situation work for you. Contact us today to learn more about this appealing option or any of our other financing options.