ភាសាខ្មែរ
CHINESE
What Is Owner Financing?
Owner financing is a transaction in which a property's seller finances the purchase directly with the person or entity buying it, either in whole or in part. This type of arrangement can be advantageous for both sellers and buyers because it eliminates the costs of a bank intermediary. Owner financing can create much greater risk and responsibilities for the owner, however.
KEY TAKEAWAYS
- Owner financing is sometimes referred to as “creative financing” or “seller financing.” It's typically disclosed in the advertising of a property when owner financing is an option.
- Owner financing requires that the seller take on the default risk of the buyer, but owners are often more willing to negotiate than traditional lenders.
- Owner financing can provide extra income to the seller in the form of interest and can move a property more quickly in a buyer's market.
