PHOTO: MORTGAGE NOTE
Financing a home is one of the most critical factors for buyers looking to purchase real estate. In fact, for the individuals with bad credit, financing can be a big issue. However, bad credit does not have to prevent you from purchasing real estate.
#1 – Seller or Owner Financing
In 2017, there were 89,779 owner financed notes which totaled $17.3 billion dollars according to Note Investor. Seller financing is a loan that is provided from the current homeowner who is selling their property to the buyer. It eliminates the need to obtain financing through a lending institution.
Homeowners who have a difficult time selling their home are most likely to provide seller financing. They would then offer to sell the home to buyer, and have the buyer sign a promissory note. This note includes a few essential terms such as what will happen in case of a default, the applicable interest rate, and the repayment schedule of the loan.
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