Home Buying in Santee>Question Details

Jordie, Home Buyer in Santee, CA

what does owner will carry mean?

Asked by Jordie, Santee, CA Wed Sep 1, 2010

Help the community by answering this question:


It means that the owner is willing to hold a note on the property. This is perfect for someone that cannot get a loan because of todays conventional loan standards.

If you need help putting something together on an owner carry, let me know. This is a great time to negotiate your own interest rate with a seller who is willing to carry.

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Hope this helps!

Patrick A. Hale, CDPE, RSD
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0 votes Thank Flag Link Tue Sep 7, 2010
You received good information from all the responders and here is a great article about Seller Financing...
I also did a video on the subject and you can view it at
0 votes Thank Flag Link Thu Sep 2, 2010
Hi Jordie,

Seller will carry means thgat the seller is offering financing on his property. It can be an opportunity to buy when regular lender standards won't let you qualify. The seller becomes your bank. They can carry a note for the whole amount of the purchase price, or even part of it.

It's worth looking into as an alternative. Let me know if you have any questions at all.

0 votes Thank Flag Link Wed Sep 1, 2010
Hello Jordie, basically it means that the seller of a property is willing to create a NOTE secured by the property he's selling for some amount agreed upon by both the buyer and seller. So for example, if you purchase a home that cost $400,000 and you put down $40,000, 10%, the seller might also agree to "carry paper" of $40,000 and your new loan would be $320,000 to the 1st lender, and $40,000 to the old seller who's carrying paper back on his previous home.

I hope that helps!
0 votes Thank Flag Link Wed Sep 1, 2010
Hi Jordie,

It means the owner of the house will finance part or all of the transaction and act as a lender. This is typically written into the purchase agreement which spells out the terms of the financing the owner will furnish.

An owner will do this when they do not want any or all of the equity out of the house and is in favor of helping a buyer purchase the home.

Best to you,

Mark & Kari Shea
Shea Real Estate
0 votes Thank Flag Link Wed Sep 1, 2010
It means that the owner of the home will finance your purchase and serve as the bank, simply stated.
Web Reference: http://ihousesandiego.com
0 votes Thank Flag Link Wed Sep 1, 2010
Great question Jordie. It means that the seller is willing to "carry back" the note on his house when he sells. He will then act like the bank and collect monthly payments from the buyer instead of one lump sum from the buyer at close of escrow. If you were the buyer you would be making monthly payments to the seller instead of to a lender. The main benefit to the buyer are that you don't have to qualify for a conventional loan, while the main benefit to the seller is that the seller can typically sell the house faster and for a better price. I deal with seller financing on both the buyer's and seller's side daily. Please feel free to contact me with any questions!
Web Reference: http://www.RealtorSD.com
0 votes Thank Flag Link Wed Sep 1, 2010
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