5 Thoughts on What are the drawbacks to buying a home with owner financing?
  1. Reply
    Angela Durrell
    November 17, 2012 at 8:51 pm

    have a lawyer review and explain the contract to you. Check for loop hole that say if you are late the property returns to the owner. You can get good deals via owner fin. just have legal rep in the deal.

    Good luck to you sugar.

  2. Reply
    lifeis f
    November 17, 2012 at 8:54 pm

    It may work for some people. Your monthly payments will include rent, plus what is effectively a mortgage payment. In exchange for this you get to live in the house now, rather than when you can afford to buy it, and you get to own the house whenever the term expires – eg. 25 years. But for this privilege you will probably end up paying the purchase price of the house 3 or 4 times over, possibly more.

  3. Reply
    November 17, 2012 at 9:17 pm

    In my area, owner financing is when the seller gives you a mortgage and the title transfers hands. What your talking about is a method that you can build up enough deposit by prorating a portion of your rent towards it. When you have enough for a deposit you go and apply for a mortgage. This works great if you can qualify for a mortgage when you save the deposit. Before you go into the deal go to your mortgage lender and get a preapproval on the one condition you will qualify when you get a deposit.

  4. Reply
    November 17, 2012 at 9:58 pm

    If the reason you are considering this is because you can’t attain conventional financing, think about the future. Most people will only do seller-financing for a short time, then you have to take out a regular loan. It’s getting tougher and tougher to qualify for a mortgage and will probably be even more difficult in the future.

  5. Reply
    November 17, 2012 at 10:37 pm

    You should consult to lawyer ! Have a review on that and take a right decision!

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