If you are selling a house in which you have a lot of equity, and you don't need that equity to buy a new home, an owner-financing agreement may benefit you and your buyers.
Seller financing arrangements usually involve the buyers securing the largest portion of their purchase money from a mortgage company and getting a smaller second loan from the sellers. For example, they may finance 75% from a lender, put in 15% from savings, and ask the sellers to finance the remaining amount. The terms and interest rates on seller carry-backs are negotiated on a case-by-case basis.
Sellers may be able to negotiate a note that provides a better return on their money than 1-to-5 year CD's or treasury notes. They should ensure that the note protects them to the fullest. Use common sense when considering such a loan, and verify the buyers' income, credit history, and job stability before making your final decision.
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Call or text Bill Cullin at 302-841-7147!
Bill Cullin, REALTOR®
Your Real Estate Source at the Delaware Beaches
Email: Bill.Cullin@LNF.com
Websites:
www.DelawareBeachRE.com
www.BeachDelaware.com
www.TheHenlopen.com
Direct: 302-841-7147
Office: 302-227-2541
Toll Free: 1-800-462-3224, ext. 117
Fax: 302-227-8165
Long & Foster Real Estate, Inc.
37156 Rehoboth Avenue Ext, Suite 5
Rehoboth Beach, Delaware 19971
