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Understanding Owner Financed Homes Miami, FL

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These days, with the overabundance of existing homes already on the market for more than 90 days, conventional methods are simply not working like they used to. You have to look for those that are listed as owner financed homes Miami, FL, or for sale by owner, in the local newspapers and websites. This is the best way to find owner financed homes Miami, FL.

What is Owner Financing?

Whenever a home for sale carries that added term “owner financing”, it means that the purchase price, minus the down payment, will be part of a financial contract that exists solely between the seller and the buyer. The buyer negotiates with the seller a purchase contract that is binding, and allows for a payment plan over time that is put towards the final purchase of the home.

Types of Owner Financed Homes Miami, FL

In the case of owner financed homes, Miami, FL, the seller will often carry the mortgage for the entire purchase price, less the down payment. This is known as an all-inclusive mortgage. When a buyer cannot get a mortgage loan on their own, this is often the best way for them to purchase a home, and the resulting loan is often in the seller’s name, rather than the buyer’s. All payments are made to the seller, who then uses them to repay the loan.

Lease purchase agreements are another way to handle this kind of real estate sale. This means that the seller is giving the buyer an equitable title, and is leasing the property to the buyer. The negotiated lease payments or a portion of each payment is put towards the purchase price, less interest, until the balance is paid, and the buyer receives full and clear title to the property.

Benefits of Owner Financing

For the buyer, there are obvious benefits to this kind of purchase agreement, especially if their credit rating is not the best. The loan can also be tailored through negotiating with the seller to an affordable and reasonable monthly payment, down payment and interest rate that you know you can afford. You also get possession of the property faster, and you probably will not have to pay any extra fees or closing costs.

For the seller, the owner financing homes program means that you will be able to command the full market price for your home, and you will not have to pay the full taxes on the sale that year. With an installment plan in place, you only have to pay taxes on the income from that sale collected that year, not the full amount all at once. You can offer the buyer a lower interest rate than any lender, making the sale even more attractive and it will most likely spend less time on the market than it would through an agency.

Whether you are a buyer or a seller, you have come to the right place. LucnarProperties.com is your source for real estate information and assistance. You can purchase homes here or you can sell your home to us. Give us a call and we will give you more details.

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