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Questions about Owner Financing (House)

Can someone tell me how this is different from a conventional mortgage in terms of terms, costs, taxes, advantages/disadvantages, what to expect, how to proceed... anything!

I know there are a bunch of downpayment assistance, first-time homebuyer, and repair assistance programs that are available, but many seem to be only through a conventional arrangement. Are ther downpayment/closing cost programs for owner financed homes?

Answer Question
 
figaro8895

Asked by figaro8895 at 11:29 AM on Apr. 27, 2012 in Home & Garden

Level 26 (27,249 Credits)
Answers (6)
  • I don't believe there are. At least, I haven't found anything available in my area.

    Generally, you would work something out with the owner of the property. For instance, I have a patient who is wanting desperately to sell his house in this way and will accept $2k down, the buyer would be responsible for taxes, upkeep, etc. and the loan would balloon in five years.
    BrawnwynII

    Answer by BrawnwynII at 11:34 AM on Apr. 27, 2012

  • There are no programs to assist in an Owner Financing home purchase.
    meooma

    Answer by meooma at 12:46 PM on Apr. 27, 2012

  • what does that mean... the loan would balloon in five years? is that a standard feature of owner financing?
    figaro8895

    Comment by figaro8895 (original poster) at 12:52 PM on Apr. 27, 2012

  • Yes, it is. It means you'd have to get a loan yourself within five years to pay off the owner.

    I've never seen a case where the owner carried the loan for the full 30 years
    BrawnwynII

    Answer by BrawnwynII at 2:24 PM on Apr. 27, 2012

  • If you are asking if you can get assistance through a federal program for downpayment assistance on an owner fiance the answer is NO. If you are just asking about owner finance be very careful alot shady people use this to basically rent the house to you and you lose all the money you put into it if you are late or deflaut the agreement. Get legal advise before you sign.
    booklover545

    Answer by booklover545 at 5:01 PM on Apr. 30, 2012

  • I totally agree with pp ^
    tasches

    Answer by tasches at 5:15 PM on Apr. 30, 2012

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