The Potential Savings from an Owner Finance Property

Buying an owner finance property can present you with a number of advantages over buying other types of property. When you can find someone that is willing to sell a property with owner financing, it is usually for your financial advantage. If you are trying to decide whether or not to go through with an owner finance deal, here are a few potential ways that you can save. 

Interest Rate

One of the best things about owner financing is that the interest rate offered is not directly tied to the market. The owner of the property can choose whatever interest rate they want on the loan. Depending on how desperate they are for cash, they could charge you a very reasonable rate, below the market rate. Getting an interest rate below the market like this can save you money each month as well as for the overall price of the loan. 

Down Payment

The down payment is another area that you could potentially save a great deal of money with. The down payment is completely negotiable between you and the seller. There are no official loan to value ratios that you have to work with. Therefore, they may be willing to give you a great deal on the down payment. 

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