Thursday, March 6, 2014

Sarasota FL Real Estate Owner Financing

Homes and condos for sale with owner financing is an area of real estate most agents don't serve effectively, if at all.  I recognize there is a sizable number of underserved potential home buyers who are looking to own their own homes and repair their credit after the real estate market crash of 2007 and 2008.  I can assist buyers looking for owner financing:  www.davidbarrhomes.com/owner_financing

The most frequent question I get from buyers looking for owner financing is 'What kind of terms is the seller looking for?'.  The most frequent question I get when asking home owners is 'What kind of terms is the buyer thinking of?'.  A home owner always responds more favorably to a written offer.

The best way to approach owner financing homes from a buyer's standpoint is to tour homes that fit your budget both for monthly payments and the amount of money you have to put down.

As with bank financing, home price and loan terms are negotiable.  Home buyers should be prepared to suggest financing terms in a written offer such as:
  • Minimum 20% down payment of the negotiated sales price;
  • Interest rate ranging between 5.5% and 6.5%;
  • Monthly payments based on a 30 year term;
  • Balloon payment due in a range between 2 and 5 years.  Buyers who had a recent short sale can get bank financing in 2 years with otherwise good credit.  Buyers who experienced a foreclosure due to a documented hardship can get a bank mortgage in 3 years.


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Pool home in Rotonda offering owner financing $154,500
A written offer which includes these kinds of items is more likely to get a favorable response from a home owner than a verbal inquiry before you have seen the home in person.

The financing documents are drawn up by a real estate attorney who will handle the closing, and, as with bank financing, the mortgage is recorded with the county.

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