Let PEGGY HOAG REAL ESTATE Find Your Dream Home Offering Owner-Carry Contracts
“I want more people to have exceptional real estate experiences, whether buying or selling.
My team and I are here to make that happen!”
—Peggy Hoag
PEGGY HOAG REAL ESTATE has full insider knowledge about the housing market in Washington and Oregon, we can locate multiple properties that fit your luxury desires and specific criteria. Whether you are looking for a waterfront home or vineyard property, we will work with you to explore the possibilities.
FAQs About Luxury Homes for Sale Offering Owner-Carry Contracts
What Does It Mean When It Says “Owner-Carry Contracts?”
This means that the owner or seller — rather than a mortgage lender or bank — finances the loan for the buyer. The seller extends credit, allowing the buyer to make payments until the purchase price is paid. There are a few ways to go about owner financing:
- Land sale purchase contract
- Rent-to-own
- Wrap-around mortgage
How Can an Owner-Carry Contract Help the Seller?
There are several ways this can work:
- The seller may sell the house as is and avoid the large cost of repairs.
- The seller may keep the title until the home is paid for in full. If the buyer defaults, the seller need not refund any money or give up the house.
- The seller can sell and close on the home faster because the mortgage application process is unnecessary.
- The seller may earn more money in the long run from the interest paid by the buyer.
What Are the Downsides of Owner Financing for the Seller?
There is always a possibility of some undesirable results for the seller with owner financing. You could face any of the following if you go with this approach:
- If the buyer defaults, the seller may be forced to foreclose on the home.
- If the seller ends up keeping the house, he or she may have to spend money on repairs necessitated by the buyer’s negligence.
- The seller may want to get help from a mortgage loan originator to fully understand all the terms of the sale, especially whether or not they want to require a balloon payment.
What Advantages Does Owner Financing Offer Buyers?
Here are some things you can look forward to as a buyer who purchases an owner-financed home:
- There may be less stringent credit and down payment requirements.
- Closing is faster and cheaper.
- The buyer need not apply for a mortgage or trouble with underwriting.
- Lower interest rates can be negotiated.
What Are the Downsides of Purchasing a Home Financed by the Owner?
Keep in mind the following possible disadvantages of purchasing an owner-financed home:
- It may be hard to find a seller willing to go this route.
- The balloon payment due at the end of the loan term must be taken into account and planned for.
- Homeowners insurance and property taxes are not included in the installment payments, so the buyer must make arrangements and pay for those separately.
If you aren’t sure if selling or buying a home with an owner-carry contract is for you, contact PEGGY HOAG REAL ESTATE, we can help!
How Can PEGGY HOAG REAL ESTATE Help Me Find an Owner-Financed Luxury Home?
When we help you locate owner-financed homes, we are completely transparent about whether the property is valued appropriately and advise you on how to prepare an effective offer. Our negotiations are based on an in-depth understanding of the housing market, home value, and their effect on your finances.
Be assured that we will guide you through every step of the process so that you feel confident and fully informed about your purchase.
Contact PEGGY HOAG REAL ESTATE today at 503.906.1370 to learn how to begin your search for a seller-financed luxury home.
