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About UsOwnerFinanceDeals.com is a FREE classified service allowing users to view and post properties that are available with owner financing terms and/or lease options. Search through our listings or browse by state and city to find your next home.With the recent mortgage meltdown, lenders are becoming tighter with their lending guidelines. Many qualified homeowners looking to purchase property are now being turned down from the bank. Seller financing terms and lease options allow buyers to bypass the bank and work towards home ownership. OwnerFinanceDeals.com attempts to help people become homeowners using seller financing and lease options by connecting buyers and sellers. Question: What is seller financing?Seller financing is when a seller helps to finance a real estate transaction by taking back a second note or even financing the entire purchase if the seller owns the home free and clear. Usually sellers do this when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price.Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase, as does a lender. Instead, it involves extending a credit against the purchase price of the home while the buyer executes a promissory note and trust deed in the seller's favor. These special circumstances must be acceptable to the lender who makes the first mortgage on the property. © 2000 Inman News Features. All Rights Reserved Question: What is a lease-option?A lease option (or lease purchase) is the abbreviated form of the appropriate term lease with option to purchase. It is a type of contract used in residential real estate. The contract is typically between two parties: the tenant (also called the lessee), who will occupy a house or apartment, and the landlord (lessor), who owns the property.During the term of the lease option, the tenant pays rent to the landlord, and in exchange is permitted to occupy the property. At the end of the contract, the tenant has the option to purchase the property outright; the tenant would typically obtain the money to do this using a mortgage. In exchange for this option, the tenant pays extra money to the landlord, in excess of usual market rent. Excess rent may also be applied towards the eventual purchase of the property, or towards the down payment for a mortgage. In that case, the lease option works as an automatic savings plan for the tenant. Lease options are often used by tenants with a poor or limited credit history, who would not qualify for a typical mortgage. The lease option may carry less risk for the landlord than a mortgage would for the lender. The lease option may also require less money up front, while a mortgage might require a substantial down payment from the tenant. © 2008 Wkiipedia. All Rights Reserved Contact UsQuestions? Comments? Reporting a problem? Send us an email at: Info@OwnerFinanceDeals.com |
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