Mortage Trends

Payment Estimator

Calculate your mortgage repayments:

Loan amount: $
Down payment: $
Annual interest rate: %
Term of loan: years
Total interest:
$
Monthly payment:
$
what's seller financing? | Print |

What is seller financing?

Seller financing is when a seller helps to finance a real estate transaction by taking back a second note or even financing the entire purchase if the seller owns the home free and clear. Usually sellers do this when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price.
Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase, as does a lender. Instead, it involves extending a credit against the purchase price of the home while the buyer executes a promissory note and trust deed in the seller's favor. 
These special circumstances must be acceptable to the lender who makes the first mortgage on the property.
The necessary paperwork is prepared by the title or escrow company after the terms are worked out between the buyer and seller.
If you are a seller considering such an arrangement, it is critical to thoroughly evaluate the creditworthiness of the buyer first. Fear of default makes many sellers reluctant to take back a second. But seller financing can bring a higher price plus complete the sale sooner in some situations. For more information, contact the Internal Revenue Service for a copy of its Publication 537, "Installment Sales." Order by calling (800) TAX-FORM.

Questions about Katy - West Houston Real Estate?

Ask us below or Call us Now at (832) 814-8715

Last Updated ( Thursday, 04 September 2008 )
 
< Prev   Next >

PRTEX_Logo

image63-17.jpg

Contact Information

Sanford & Seretha Sellers
Premier Realty of Texas
23930 Westheimer Parkway #120
Katy, Tx, 77494
Office: (281) 701-1573
Cell: (832) 814-8715
Fax: (281) 944-3933
SSellers@KatyDreamHomes.com
www.PRTexas.net
Lic. #: 0486459

Visit InHouston

Just Listed RSS Feed

See the newest properties as soon as we enter them in your favorite feed reader!

Don't worry about missing the right one... we make it easy for you!
RSS

FREE eNewsletter

Realtor ratings and reviews of Sanford Sellers

Syndicate this Site

Get the newest real estate Information from our site delivered right to your desktop!
eho_logo.jpg
© 2010 The Sellers Team Katy   Real Estate Websites - Free Real Estate Advice - Real Estate Marketing