Financing in 29575>Question Details

Bobbi, Home Seller in 29575

what is going rate for owner financed properties?

Asked by Bobbi, 29575 Wed May 2, 2012

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Greg Galbavy’s answer
There is no “going rate” for owner financing. Each situation is usually different. The rate and terms are items to be negotiated between the buyer and the seller, with the rate usually a “little” higher than bank rates. The size of the down payment and buyer’s financial position and credit are factors that usually affect the rate. Keep in mind that owner financing is not normally for buyers with poor credit, but rather for those with situations that make it difficult to obtain conventional financing such as; self employment, job or career change, having another property to sell, etc.. I recently negotiated a 5 1/2% rate for my buyer for a commercial/residential property with the seller paying the commission. A lease with a purchase option could be better. If you are uncomfortable or inexperienced at negotiating, it could help to use the services of a professional realtor.
0 votes Thank Flag Link Thu Mar 7, 2013
It's my understanding that to prevent predatory lending, Owner financed properties will have to be structured over a term starting in 2014. I'm not positive if there will be any specifics relating to rates.
0 votes Thank Flag Link Tue Dec 17, 2013
Doing one tomorrow at 10%...What is in it or the lender if the buyer balloons out in a year thus the highter rate.
0 votes Thank Flag Link Tue Sep 25, 2012
That depends on the individual seller, the amount you put down and the specific home. Their is also the option of just "putting your foot in the water" and doing a lease option with much less risk. For more info about that give us an email at or call us 843-282-8750. These can be a great way to break into the market!
0 votes Thank Flag Link Mon Jul 30, 2012
The terms of an owner financed property will depend on the owner. There isn't really anything regulating what a person can or can't sell their property for. Because of that, the owner can basically structure his own financing however he/she likes. When using owner financing a deal will be struck between the seller and buyer. So to answer your question, there is no going rate, it's whatever you and the seller agree upon.
0 votes Thank Flag Link Mon May 14, 2012
Each deal is structured different. I just try to create a win win situation. Kind Regards, Cherie
0 votes Thank Flag Link Mon May 14, 2012
7% Rate/ 30 Year Fixed with 10% down. No Balloon payments!
0 votes Thank Flag Link Fri May 11, 2012
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