Buyers often ask if owner financing is possible? Will sellers carry the paper? In other words, will sellers offer buyers owner financing? I just sold a home, and the seller did offer owner financing, but this is rare. Very rare. There are only nine owner financing homes listed in the MLS in Clallam County, including the Sequim and Port Angeles area.
You can see all the homes offering owner financing at Sequim Owner Financing. This link will be active no matter when you use it, although the number of homes included in that list will change as homes are sold or new homes offer owner financing.
Owner Financing Terms
The home above sold for $231,000 with a $45,000 down payment and owner financing included payments amortized over 30 years at 5.5% with a balloon payment in 5 years. Based on standard seller closing costs, the seller netted about $12,500 at closing. The buyers will pay a little over $1,000 per month in principal and interest. I share these numbers so you will have an idea of what the math looks like. A buyer will have to come up with a substantial down payment, and in this case that was $45,000, but it is often more than that.
A buyer may ask a seller for owner financing if they have had a financial crisis in the past ten years that hurt their credit. That kind of thing can happen to good people as the result of a business failure through no fault of the business owner, or a pension may have been hit by poor investment advisor recommendations, or a family member may have defaulted on a co-signed note.
You can read more about how owner financing works at How Does Seller Financing Work? You can also read Are There Any Sequim Homes That Offer Owner Financing?
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- Pre-Qualify for a Mortgage Online
- Traps for the Unwary Buyer
- Appraisal Management Companies
- How Do Reverse Mortgages Work?
- The Loan Process