Benefits and Risks of Creative Owner Financed Transactions

Creative owner financed transactions are an excellent alternative method of purchasing or selling a home in today’s mortgage and real estate marketplace.  If you are in a position where you are unable to sell your home regardless of the reason, or if you are unable to qualify for a mortgage loan or simply don’t have the large down payment and or closing costs required, you may wish to consider on e of our owner financing options. Listed below are what we perceive to be the Benefits and Risk of buying or selling a home using unconventional methods.


  • Reduced marketing time
  • Good exit strategy regardless of personal or property circumstance
  • Minimum or no closing costs
  • Stops potential foreclosure since the property is sold and payments are maintained
  • Subject to Buyer pay history may improved credit rating
  • Quick closings (sometimes in a manner of weeks)



  • Violation of Due on Sale clause
  • Seller not released from loan liability until the loan is paid off
  • Subject to Buyer pay history could impair credit rating
  • Even though the property is sold, a portion (25%) of the monthly mortgage payment must be shown as a liability and can affect debt to income ratio calculations when making major purchases

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