Seller financing, which you rarely – but sometimes – run into when you’re scoping out the real estate market, is a way for buyers to get non-conventional financing to buy a house.
What is Seller Financing?
Seller financing involves the buyer borrowing money from the seller to buy a home instead of going through a bank or lender. The buyer sends monthly mortgage payments to the seller.
The seller gets to earn interest on the loan (and sometimes at a higher rate than he or she would get through other investments).
Usually these arrangements are short-term and feature a balloon payment at the end.
Some buyers like them because they can use that short-term period to build up credit and later qualify for a conventional loan.
Are You Buying a Home in Irvine?
If you’re thinking about buying a home in Irvine or any of the surrounding communities, we can help you find one that’s just right for your needs (and your budget).
Call us at 949-385-1684 or get in touch with us online to let us know what you’re looking for.
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