If you’re thinking about selling your home and want to know your alternatives, you might want to look into “seller financing” (also known as “owner financing”). Owner financing is a relatively unknown yet highly effective method of selling a home. And maybe you’re wondering if seller financing in Cleveland is a good idea. That is an excellent question, and we will address it in this blog article…
Here’s How Owner Financing Works
In a typical home sale, the buyer (who does not have all of the money) goes to a lender (such as a bank), pays a down payment, and then makes regular monthly mortgage payments until the loan is paid off in full.
Most people are used to purchasing and selling in this manner. However, there is another option for selling your home that you may not be aware of: owner financing.
Everything is identical with owner financing except for one thing: the seller of the house acts as the bank: the buyer pays a down payment to the seller and then makes regular payments to the seller (similar to mortgage payments) until the house is paid in full. The buyer then becomes the owner of the property.
Is Owner Financing A Good Idea For The Seller In Cleveland
Owner financing is a popular choice among many sellers.
- They like that they can sell to a bigger pool of possible purchasers (including those who might not qualify for traditional bank financing)
- They appreciate the monthly financial flow that loan payments provide.
- They enjoy the fact that they still own the house and are protected if the seller defaults on their payments.
- They appreciate the lack of property management.
What’s not to like about that? You obtain consistent cash flow and protection while still having the option to sell your home. That is an excellent recipe. Owner financing may be a good option for you if you’re selling your principal residence or if you’re a landlord who wants to start selling some of your rental properties.
Owner financing may be a good alternative for you if you’d want to spread out your payments or have multiple bidders competing for your home. Take a closer look at owner financing if you’re serious about selling your home and want to consider all of your choices.
With that said, owner financing is not for everyone. If you want to talk to one of our team about how owner financing might work for you, and what some of your other options are, call our team right now at (440) 291-5361 or click here to fill out the form and we’ll get back to you ASAP