What does the term "owner financing available" mean? Does the owner provide the mortgage?

In Buying Property - Asked by David R. - Aug 31, 2009
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Lou N.
Winter Park, FL

Yes, the owner provides a loan. (The mortgage is just a recorded lien securing the debt.)

Aug 31, 2009
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Gregory G.
San Francisco, CA

It means the owner will finance some of the purchase, or lend you money.

Sep 1, 2009
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Paul S.
Glendora, CA

Yes, the owner is offering to provide some or all of the financing. However, there are pitfalls to owner financing. You need to really examine all aspects of the deal. Many owners will finance because no one else will. In today's market that doesn't necessarily mean it is a bad thing, just that money is tight and difficult to obtain for a variety of reasons. On the other hand it may be there is something inherently wrong with the property which would cause it to be too risky for an institutional lender. Owner financing is also a way for a seller to get a premium price for the property, one that would be unlikely to appraise for? Ask yourself why would an owner carry? There are some good reasons for an owner to carry one of which is taxes. By carrying paper they defer capital gains which may be beneficial to a seller? Bottom line is be careful with owner financing. It can be very good for you and it can be bad as well.

Sep 2, 2009
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Jacqueline S.
Spotswood, NJ



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Sep 9, 2009
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