It depends on the individual situation. Usually, people who need seller financing do not have good credit. If they did, they would get a mortgage on their own. This presents a risk to the seller. The buyer does not have a good track record of paying their debts in full and on time. It makes sense that the seller would want to charge a higher interest rate to protect themselves financially. Expect rates above what a bank or mortgage company would charge you.
Each situation is different. And no lots of people need seller financing that have good credit, and a down of 10% or more. Reality and fact is banks are turning people down for some crazy reasons. Here are two true examples: A woman makes over six figures and can’t prove to the bank where her down came from, denied. Now this woman had saved her money and had it in the bank, the bank’s excuse being some one may have given her the money and then it would be seen as a debt. Story #2, a man gets a long deserved promotion with the company he has been with for more than 10 years, since he did not have two years in his new position the bank denied him, even though it was in the same company and he doubled his income. I am a professional note finder and deal with these things on a daily basis, and find many good people need seller financing which is a win, win situation for the seller and buyer. Contact me for any information, always make an informed decision.
We’ve payed between 8.5 to 10% for seller financing. It all depends on what you can talk them down to. Good luck!
Do you mean buyer financing its about 6%
It depends on the individual situation. Usually, people who need seller financing do not have good credit. If they did, they would get a mortgage on their own. This presents a risk to the seller. The buyer does not have a good track record of paying their debts in full and on time. It makes sense that the seller would want to charge a higher interest rate to protect themselves financially. Expect rates above what a bank or mortgage company would charge you.
It all depends on how good at negotiating you are. You may pay a bit more, but there ar no closing costs, origination fees, etc.
Each situation is different. And no lots of people need seller financing that have good credit, and a down of 10% or more. Reality and fact is banks are turning people down for some crazy reasons. Here are two true examples: A woman makes over six figures and can’t prove to the bank where her down came from, denied. Now this woman had saved her money and had it in the bank, the bank’s excuse being some one may have given her the money and then it would be seen as a debt. Story #2, a man gets a long deserved promotion with the company he has been with for more than 10 years, since he did not have two years in his new position the bank denied him, even though it was in the same company and he doubled his income. I am a professional note finder and deal with these things on a daily basis, and find many good people need seller financing which is a win, win situation for the seller and buyer. Contact me for any information, always make an informed decision.