Toi Mulligan, Home Seller in Spokane, WA

What are the normal terms for owner financing in today market (The buyer market) in terms of down payment and interest rate etc... Thank you.

Asked by Toi Mulligan, Spokane, WA Thu Dec 2, 2010

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All terms can be and should be negotiated. Rates today are around 4%. Owners will usually ask for a higher interest rate than 4% for taking the risk. Down payment will depend, but the seller will get as much as they can down so the buyer will have “skin in the game.” If they back out the buyer will lose too.
0 votes Thank Flag Link Thu Apr 19, 2012
If you plan to sell the note after at least 6 months: at least 10% as a down payment more if credit is super bad, interest rate of 6 - 10 %, normal traditional term (120 months, 180 months, etc.) Avoid interest only payments with a balloon payment due in two years. You want to make sure if selling the note it is appealing to the note buyer not the home buyer.
0 votes Thank Flag Link Mon Dec 6, 2010
It all depends, but someone needing Owner Financing in this market probably does not have good credit.

Look for at least 10% down, charge a minimum of 1% over conventional (Best) rates so around 5.5% right now, and spenf the $500 for a Real estate Lawyer to put together the contract for you.
0 votes Thank Flag Link Sat Dec 4, 2010
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