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Real Estate Articles |
What is seller financing?
Seller financing is preferred over conventional financing as for a number of reasons. When financed by the seller one isn’t bound to strict guidelines and regulations typically involved in case of financing from financial organizations.
Typically, seller financing refers to when you give the seller a down payment, and adjust the remaining in equal monthly installments. You have to pay the interest to the seller in case you opt for seller financing. However, it is a better alternative in case you have previous credit problems.
In terms of money, seller financing is advantageous as it doesn’t require you to pay a loan origination fee. Moreover, you will be exempted from appraisal, inspection, typically carried out by financial institutions.
Another aspect of seller financing is how the first mortgage is handled. In case you have a first mortgage in existence, you have an option of purchasing the property through a second one. |
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