If Medical Bills, Divorce, Self-Employed, Privacy Issues or recent Bankruptcy is keeping you from traditional bank financing then OWNER-FINANCING may be a perfect option.
Reduced Closing Costs
Owner-Financed closing have much lower applicable closing fees than typical bank financing.
You can become a HOMEOWNER in 7-10 days!
Is Owner-Financing the Same as a Lease Option or Rent To Own?
Owner-Financing is considered a "creative or alternative" method of purchase, but that's where the similarities end. It is important to know that Lease Options and/or Rent To Own purchases are ILLEGAL in the State of Texas. Don't let anyone tell you otherwise. A (tiny) loophole does exist which allows a LO/RTO for no more than 180 days. But the time is short, the regulation difficult and the penalties for doing it wrong are steep. If someone is offering a Lease Option in Texas it's a clear sign the seller doesn't know what they are doing and is operating in a questionable if not completely illegal manner.
How Does Owner-Financing Work?
Owner-Financing works like any other purchase. A contract is drafted and delivered to a local title company or attorney's office who prepares the closing documents. The only difference is there is a lot less paperwork because no bank is required.
How Do I Qualify?
A down payment of $10,000 or 10% (whichever is greater) of the purchase price is required. Your down payment and the ongoing ability to make monthly payments are the top qualification factors which allow you own a beautiful home. Occasionally additional buyer associated closing costs and credit documentation may be required, though we try to keep that to a minimum.
When you find the house you want to buy a standard state-approved purchase & sale agreement is established and a small escrow deposit is held by the closing office. The closing office will prepare all of the documents necessary for the purchase. At closing, the remainder of the down payment and any buyer-associated closing costs are paid. The deed is transferred to your name and you receive the keys.
Congratulations you're a home owner!
After closing your monthly payments will be made to a third-party loan servicing company who will receive and distribute the funds, ensuring the escrows are paid. They will also make sure your loan amortization is correct and prepare your annual tax documentation, allowing you to claim avaliable tax benefits. Your loan servicer will also provide a record of your mortgage payment history, which is critically important when trying to refinance or apply for other credit.
Please contact us directly. We are here to help and would love to address your questions and concerns. Remember, there's never an obligation or pressure to buy.