If you are thinking of selling your house, have you considered seller financing? If not, you may not know that there are plenty of benefits both for you and the buyer. Below are some of the benefits that each party enjoys with seller financing.
Benefits for Buyers
- Quicker Closing – You don’t have to wait for an underwriters, legal departments and bank loan officers to process or approve an application.
- Cheaper Closing – No appraisal costs or bank fees
- Down Payment is Flexible – No government-required or bank minimums
- Great for people who can’t qualify for financing
Benefits for Sellers
- Able to sell faster – You can sell without making any costly repairs that may be required by traditional lenders.
- Good investment – You can earn much better rates on money that you raise from the sale of the house than the money you’d get from another investment.
- Option for a lump sum – You can sell the promissory note to investors, so that you can get a payment that’s lump-sum immediately.
- Retain title – Should the buyer default, you’re able to keep your down payment as well as any of the money already paid, along with the house.
- Sell quicker – You may be able to sell the house and close it faster because there’s no mortgage.
As you can see, there are plenty of benefits with seller financing that are enjoyed by buyers and sellers. If you are ready to sell your house and you are looking at your options, seller financing may be something you want to consider.