Owner Financing Advantages

Easy Qualifying

Owner financing or Seller financing has many advantages over traditional financing.  The significant advantage is that borrowers that can’t qualify for traditional financing can usually qualify for owner financing if they have the required down payment.  This is the largest advantage because it gives people the opportunity to purchase a home who normally couldn’t purchase with traditional financing.

Lower Closing Costs

With owner financing the closing costs are much lower than traditional mortgages.  In fact sometimes there are no closing costs at all.  In a traditional sale there are fees such as loan origination fees, discount points, processing fees, underwriting fees, credit report fees, appraisal fees, lender inspection fees, appraisal fees, survey fees, recording fees, attorney fees, escrow fees and the list goes on…  Usually a borrower will pay between 3-5% of the sales price towards fees that are not necessary with owner financing.  Most of the fees are simply fees to pad the pockets of the banks.  How do you think the banks have gotten so big?  This is one huge revenue generator for the banks.  Seller financing removes most or all of these fees so that the money you pay goes towards the purchase of the house as it should be.

Faster Possession

In an owner financing transaction you can usually close and move in as soon as 7 days after signing the contract.  The red tape involved in a traditional transaction takes 30-45 days and sometimes more.  Most of the time needed to approve a loan is unnecessary.  With owner financing, you don’t have to wait a long time for approval.  It is usually approved in 1-2 days.


Buying an owner financed home is extremely simple.  You find a home you like, fill out some simple paperwork with the seller, pay your down payment and close all in a matter of days, not weeks or months, then move in your new home.

More Equity

With our owner financing program the term of the loan is set up on a shorter amortization or fewer years so that a larger portion of your payment goes towards the balance of your home.  In just a few years you will have paid off a significant amount of your loan.  Most loans today are 30 year mortgages and people still owe about what they paid after several years of making payments.  See my article: “Should 30 year mortgages be illegal?” to learn more.  Besides, who wants to pay for something for 30 years before they truly own it?  In addition, since there are little to no closing costs, most of the money you bring to closing will go toward paying off your house.

What are the advantages of owner financing?
Article Name
What are the advantages of owner financing?
Easy qualification for owner financing allows people to purchase a home who normally couldn’t purchase with traditional financing.