Owner Financing
As owners of the properties you see listed here, we are able to price and sell to you directly what interests you. We are also in a unique position to be able to offer an added benefit of OWNER FINANCING.
What is Owner Financing?
Instead of applying at a bank or other lending institution for money to purchase a property, you make regular loan payments directly to the Owner.
What are some advantages of Owner Financing?
- There are many fees related to the application, processing and service of your loan from almost any other lender. We do not charge any application fees, processing fees, points for origination or discount, and no fees for the service of the loan.
- Most people try to secure a parcel of land first, and then begin with efforts to build, make improvements. Most times, with other financial institutions, that means two sets of “closing costs”- preparation of Deed documents, attorney fees to close, recording fees, etc- one set when you purchase your land and another when you finance your home. The owner financing we offer allows you to secure your land, then focus on plans for your home, outbuildings, etc.
- To deter the service of a loan for only a short term, many lenders impose a pre-payment penalty for early payoff (due to extra principal payment or the borrower’s choosing to refinance). This ensures they will receive much of the cash flow expected the loan was made. We do not charge any penalty for early payoff. All of our loans are simple interest loans which may be paid off at any time. Any additional money remitted over payment amount is applied directly to principal, which can save interest for the buyer.
- If your financial or employment situation is not exactly what lenders are looking for, we may be able to help. We do not use the same formulas for approval- so recent gaps in employment, single income families, excessive debt-to-income ratios, or past credit problems may not disqualify you as a buyer.
- The interest you pay for your land is tax-deductible as mortgage interest. You should receive a form 1098 from us, if applicable.
- We can be flexible! We attempt to tailor the terms of each owner finance plan, so that it makes sense for both parties: borrower and lender.
What’s in it for us?
We offer owner finance to spread the income from your purchase over a number of years, and pay the tax liability over a longer period of time. Plus, it keeps an incoming cash flow month to month!
What is our Finance Policy?
In general, we ask for 10% down on all properties and finance balance of purchase price with approved credit (There is a charge for credit verification, currently $20.00 for individual, $30.00 for joint report). With excellent credit and owner concession, we can work with less than 10% downpayment. Where a building, well and septic, or other costly improvement exists on the property, we may ask for a downpayment greater than 10% to cover some expense.
We finance land parcels through land contract and installment arrangement. The loan has a maximum term of 10 years, but payments may be amortized over 30 years, if needed, to keep payments low.
Generally, we carry smaller loans at a current 9.9% interest rate. Larger or interim (“bridge”) loans start at rates which are more favorable – call for a quote today! We encourage buyers to secure other financing if a lower interest rate and/or better terms are available.
There are no upfront fees or costs for our loans, and you may pay the loan off at any time without any penalty.
