If I understand your question correctly, seller financing is provided by the owner of the property. If they own the home free and clear, they can provide the buyer with financing by carrying a note for the amount owed. This is the purchase price of the property minus the buyer’s down payment. This note is secured by the property. The only qualifying the buyer needs to do is whatever the seller requires.
Buyer financing is normally provided by a bank or mortgage company. The buyer needs to qualify for the loan.
Buyer financing: You make a downpayment, 3.5%, 10% or 20% and seek a bank loan for the balance of the purchase price.
Seller Financing: the HOLY GRAIL of home buyers and INvestors!! All R.E. get rich quick schemes begin with finding this GUY!!
You work out a down payment amount, some terms and conditions and the SELLER finances the purchase for you! In essence HE becomes you bank…
Seller financing is when the person who is selling the property plays the role of the bank and takes the payments.
Buyer financing is when the buyer goes the traditional route and gets a conventional bank loan or FHA loan.
If I understand your question correctly, seller financing is provided by the owner of the property. If they own the home free and clear, they can provide the buyer with financing by carrying a note for the amount owed. This is the purchase price of the property minus the buyer’s down payment. This note is secured by the property. The only qualifying the buyer needs to do is whatever the seller requires.
Buyer financing is normally provided by a bank or mortgage company. The buyer needs to qualify for the loan.
Buyer financing: You make a downpayment, 3.5%, 10% or 20% and seek a bank loan for the balance of the purchase price.
Seller Financing: the HOLY GRAIL of home buyers and INvestors!! All R.E. get rich quick schemes begin with finding this GUY!!
You work out a down payment amount, some terms and conditions and the SELLER finances the purchase for you! In essence HE becomes you bank…
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