Basically all the statements here are true. I am a private investor who does "Owner Financing" deals. We do charge around 8-10 percent interest. We DO NOT increase the price of the home. I feel it is either a higher rate or higher price. If your doing both of them look for something else. You are being taken advantage of, they are greedy sharks.
We understand people get into credit issues (We have personally). We look at the buyers ability to pay. Past rental history and rental amount. We then get the payment at a price they have shown they can afford. It is usually around what they are currently paying.
The payment will include Principal, interest, taxes, home owners insurance and loan servicing with escrow. We adjust the term and the rate to achieve this affordable amount. We do a full closing including promissory note or deed of trust (depending on state). Do not do Owner financing unless they are deeding the property to you or an entity you control.
Our loan servicer reports to the credit bureaus, we send you to the local United Way-they do credit counseling and charge a sliding scale-usually very reasonable. We also set you up with a mortgage broker who will tell you what you need to do to your credit so you can qualify. They can even tell you when they can get you a loan if you follow the instructions. All of these are up to you the buyer. We give you the tools and information so you can refinance the loan at a lower rate. It up to you to do it.