Why Opt for Owner Financing Homes Albuquerque?
Instead of borrowing money from a commercial lending office and obtaining a mortgage, a buyer can choose to purchase an owner financed home. During this process, the current property owner lends either a portion or all the funds required for purchasing the house. This is becoming a popular alternative to normal real estate transactions, especially in times when the area is considered to be in a buyer’s market.
Types of Owner Financing
There are many types of owner financed homes. The three most common are land contracts, lease-purchase agreements, and mortgages. Land contracts provide the buyer with an equitable title until the buyer has paid the owner for the full amount of the property. At that time, the new owner would then receive the deed.
The seller and buyer could also choose to commit to a certain type of mortgage known as an all-inclusive mortgage or all-inclusive trust deed. In these instances, the seller carries the mortgage and receives an interest override on the underlying loan that accompanies the mortgage. In cases of a junior mortgage, the seller carries the first new mortgage and the buyer takes out a second mortgage to give to the seller as payment.
A third option is a lease-purchase agreement which essentially leases the property to the buyer. The buyer gets an equitable title and will receive the full title after paying the seller the full purchase price for the property.
Pros of Owner Financed Homes
- Faster and cheaper closings
- Flexible down payments
- No pre-qualifying needed from the buyer and financing is tailored to their needs
- The home can be sold as is
- The owner retains the title in the event the buyer defaults
Owner Financing Homes Albuquerque
Sunwest Escrow is ready to help you secure the owner financed homes Albuquerque has to offer. Opting for an owner financed home will provide you with many benefits including a faster close and better financing options. Speak with one of our knowledgeable escrow agents today to learn more about this advantageous buying option.