The idea of seller financing can be good for both the seller and the
buyer.This type of financing needs a lawyer to do the paperwork.
Without a lawyer things in the contract may not be right.This type
of financing is not for everyone.This kind of financing should only
used as a second chose.Most of the time seller financing will not be

on your credit report.

A lot of times having seller financing will hurt your credit.A lot
of places will not take it as a credit reference One of the most
important things you should remember about this type of financing,
a mortgage company may not finance the house.This could be the reason
for the seller financing.There may be something wrong with the house.
If the owner will let you have someone check the house,the deal may
be alright.

The seller sometimes is just selling the house by financing it their
self because,they want a monthly income instead of a large amount at
one time.When you look at seller financing house,it is alright to ask
the seller why they are selling the house.You should be aware if they
do not give a good answer.

In order for seller to give you what looks a good deal,they may have
lower down payment.When buying a house you should already know the
more you give as a down payment ,the less the payment will be per
month.This will be true unless the interest rate is higher due to the
owner financing.This is one way that a seller can get more money from
the house than it is worth.Most of the time the seller is paying less
interest on the house loan.

If you can,you need to find another person who had bought a house with
this type of financing.If you ask a Realtor about owner financing ,they
will always tell you not to do it.The reason for this,they always lose
a sale every time the seller buys from seller financing.

One of the bad things about these kind of deals,If something goes wrong
with your job and you get behind on payments,you will sometimes lose
your down payment.A lot of owner financing people make a lot of money
off selling houses like this.A mortgage company will at least let you
try to get your down payment back by selling the house.If you have seller
financing ,they may not let you try to sell the house.There must be
something in the seller financing contract about this.

With seller financing, another important thing is ,the contract must say
you will able to sell the house after a certain amount of time.You must
also know that the house will not be in your name in case you wanted to
refinance.Most of the time the owner can refinance it at any time.This
is another way the owner will make money off the house,and you would be
paying for the money he got.This should also be in the house contract.

If you don't have any credit and you really need a house,this kind of deal
may work for you.You must also compare other houses in the same area so
to see that you are not being charged too much.I have bought houses with
seller financing myself.

Learn more about this author, Charles Johnson.
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