Mortgage Hack #13
How it works: When a home is sold through seller financing, the seller becomes the lender, which would typically be a bank or traditional mortgage lender. The note is made between the seller and buyer.
Benefit to Buyers:
Buyers benefit from the ability to purchase a home without being approved through a traditional lender, flexible terms, and lower closing costs.
Benefit to Sellers:
Seller financing can offer several benefits to the seller who owns their property outright or can pay off the remainder of their existing mortgage with a down payment from the buyer.
• Selling quicker in a buyer’s market
• Reduced closing costs
• Capital gains tax savings
• The ability to offload insurance, taxes, and maintenance
Reference: 2022 Keller Mortgage LLC