Is Owner Financing A Good Idea For The Seller In New Jersey ?

If you’re thinking about selling your house in Florence, or Bordentown, or other places in New Jersey and you’re wondering what your options are, perhaps you should explore something called “seller financing” (also called “owner financing”). Owner financing is a little-known and often overlooked but very effective way to sell your house. And maybe you’re wondering, is owner financing a good idea for the seller in Delanco, or Riverside or Bordentown New Jersey? That’s a great question and we’ll talk about it in this blog post…

Here’s How Owner Financing Works

In a normal home-selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full. Plus the bank collects all that interest income.

This is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of, and it involves owner financing.

With owner financing, everything is similar except this one thing – the seller of the house acts like the bank: the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid in full. And the seller collects all that interest income. Then the ownership of the house transfers to the buyer.

Ever notice there is a bank in every town? And they have the nicest buildings and/or the nicest, best locations. It’s good to be the bank. There area a lot of benefits built into this strategy.

Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In New Jersey

Many sellers do find owner financing to be a great idea.

  • They like that they have a larger group of potential buyers to sell to (including those who might not qualify for traditional bank financing)
  • They like that they get monthly cash flow from financing payments
  • They like that they still own the house and are protected, should the seller stop paying
  • They like that there is no property management
  • You’re not locked into a 30 year payment plan

What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you. And because you are acting like the bank, you get a say in setting the terms. Down payment amount, length of payments, interest rates. these are all negotiable features of a seller financing mortgage. Maybe you do want a traditional 30 year fixed rate mortgage. Or how about something more short term like a 5 year term with a balloon payment at the end? What about an ARM? There are many variables to consider.

If you’d prefer to spread out payments or to have more buyers trying to buy your house, owner financing might be a great option for you. If you’re serious about selling your house and want to explore all of your options, take a closer look at owner financing.

With that said, owner financing is not for everyone. If you want to talk to one of our team members about how owner financing might work for you, and what some of your other options are, call our team right now at 609-531-4990 or click here to fill out the form and we’ll get back to you ASAP

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