| I have been asked many questions with regard to | | | | If you intend on selling this mortgage note down |
| selling a home with Owner Financing. | | | | the road, you want the buyer to have some |
| One typical question I am asked often..."I am | | | | equity in the home from the start. The more |
| selling my home and offering Owner Financing, but | | | | equity your buyer has, a contract buyer is more |
| having trouble finding a good candidate with a | | | | likely to purchase the note. |
| good down payment. Should I take a chance and | | | | Example: |
| allow a buyer to put no money down?" | | | | A home is selling for $100,000 and the potential |
| I tell my potential clients that it is never a good | | | | buyer can put down $20,000. This buyer is |
| idea to sell a home without a down payment | | | | already starting with a 20% equity position. A |
| from the buyer. You want the buyer to invest | | | | contract buyer likes to see that. |
| some of their own money into the home. If they | | | | You might suggest that a potential buyer secure |
| have their own money involved, they are more | | | | a personal loan for the down payment. Can they |
| likely to take care of the home, keep up with | | | | receive a loan from a relative? Do they have a |
| maintenance and pay the bills associated with | | | | credit union or can they borrow against their 401 |
| home ownership.You want the potential buyer to | | | | ? In some cases, you can receive a hardship |
| show some commitment to the home. | | | | withdrawal from a 401 for the down payment |
| How many times have you come across a rental | | | | towards home purchase and not have to repay |
| property only to see it run down? That renter | | | | the sum withdrawn. |
| had no equity in the home. They would not be | | | | They then give you the money for the down |
| loosing any of their own money, therefore; might | | | | payment. This option gives you the cash down |
| not care about the property or it's condition. What | | | | payment, the buyer has the commitment to the |
| are they loosing? They can walk away and find | | | | home and a contract buyer will see equity. |
| another place to live, leaving you with the | | | | Before making any final decisions, please make |
| responsibility of upkeep and making any repairs | | | | sure you have a good real estate lawyer to help |
| needed. | | | | you. Protect yourself. |