Homes Offering Owner Financing | Sarasota FL | David Barr Realtor

I've made owner financed properties one of my real estate specialities.  There's a lot of confusion around this subject, especially since the advent of Dodd-Frank financing rules after the real estate crash of 2008.

First of all, a property owner offering a single owner financed home for sale during a one-year period does not qualify as a "lender" who would need a mortgage license under Dodd-Frank.

Secondly, when you visit for owner financed properties, I'm able to display listings from our MLS based on the financing offered.  I include lease option homes, because most listing agents aren't familiar with owner financing and don't bring it up to their clients.  With the right offer, a home owner offering a lease purchase option may consider owner financing.

Owner financing is not for those with bad credit.  You should expect the home owner will run a credit and background check.  After all, you will be, in a sense, business partners.

  • Buyers who already own multiple properties, making a bank mortgage expensive and difficult;
  • Buyers who have other properties to sell before they move to Sarasota;
  • Buyers who have cash, but just don't want to deal with the mortgage process.

Here's what you should expect as a home buyer in an owner financing scenario:
  • Downpayment of at least 25% of the negotiated sales price;
  • Interest rates of 8 to 15%;
  • 15 or 30 year amortization;
  • 2 to 5 year balloon period  (period the mortage in full comes due);
  • No prepayment penalty.

I work with a real estate attorney who also specializes in owner financing.  The attorney drafts the mortgage agreement, handles the closing, and files the mortgage with the county, just like a bank financed property.  The attorney will also provide automatic bank draft payment options or provide you with a coupon book.

For a current list of properties offering owner financing, visit my website


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