“What is Owner Financing?” is the next video in my series of videos for Albuquerque home buyers. There are many different kinds of financing available. Owner financing is an option available for some situations. It may be a great option for you.
“Even if you can’t qualify for a traditional mortgage, you may still be able to buy an Albuquerque home using what’s called Owner Financing. In owner financing, a real estate contract is drawn up between buyer and seller. There’s no mortgage company involved but there’s an escrow company. Buyer makes their payment to the escrow company, the Escrow company then pays off the sellers mortgage and gives any difference to the seller. This is actually called an REC wrap.
This might be ideal if you want to buy a home but you have one to sell first. If you ‘re an investor already has 7 or 8 mortgages and now your bank wants 30 or 35% down and you don’t want to pay it. Or if you’re working on fixing your credit and you need just a little bit more time to get your credit scores up. It’s a temporary solution but it may be the right solution for you.”
View more of my Albuquerque Real Estate Videos on my YouTube Channel.
Please check back next Monday morning for the next in this series of unscripted, unrehearsed videos featuring answers to frequently asked home buyer questions.
Three of the new home searches now available on my Albuquerque Real Estate website:
are you seeing an increase in owner financing? Most buyers are a little nervous especially with sellers that may have already gotten burned by wishy-washy buyers. Are sellers really jumping on this?
We have seen an increase, I believe, although I don’t have any stats I could quote right now. We’ve seen an increase from investors using contracts. I’m not trying to say it’s 10% of our market or anything, but rather that it is an option for some home buyers.