| It can often be difficult to obtain a loan | | | | land in these and other areas. |
| from banks, which is why owner financing is | | | | |
| becoming very popular among home and real | | | | Customers who wish to apply for loans from |
| estate buyers. Among the many perks of owner | | | | banks will find a variety of resources |
| financing, the seller often accepts a low | | | | online, including and These sites offer a |
| down payment whereas banks often charge 20% | | | | customer the ability to have banks competing |
| or more. In addition, many owner financed | | | | for their business. According to these |
| properties can be obtained without a credit | | | | sites, offers may begin arriving within |
| check. This is especially beneficial for | | | | hours. Not everyone will be approved, |
| anyone who has a few blemishes on his/her | | | | however, as there are a number of deciding |
| credit report, which may cause banks to | | | | factors that banks look at when deciding to |
| charge a higher than normal interest rates. | | | | extend credit. Among them, the customers |
| An individual, or real estate developer, who | | | | credit history, debt to income ratio, ability |
| is in the business of providing owner | | | | to repay the loan and the presence of regular |
| financing will likely extend financing to | | | | income. |
| anyone who agrees to keep the payments | | | | |
| current. | | | | Loans that are obtained through banks will |
| | | | require documentation, which may include |
| In recent years, the internet has become a | | | | previous 2-3 years of tax returns, current |
| hub for owner financing properties while also | | | | pay stubs and/or proof of employment. If |
| providing plenty of lending opportunities for | | | | they own land, individuals who are interested |
| anyone who wishes to apply for a loan from | | | | in buying or building a home will find that |
| banks. Currently, a lot of the major | | | | they have more success with banks. The |
| internet auction sites have a category that | | | | reason is because the land will become |
| is specifically designed for buying and | | | | partial collateral for the loan and, if the |
| selling real estate. These categories are | | | | buyer defaults, banks will foreclose on both |
| more often used for owner financing options | | | | the house and the land. In addition, many |
| related to land purchases, but buyers will | | | | land owners do not have to come up with the |
| find a few homes sprinkled in now and then. | | | | money for a down payment as the equity in |
| From a mountainous retreat to a tropical | | | | their land will serve as the down payment. |
| island paradise, there is owner financing for | | | | |