If you’re thinking about selling your house and you’re wondering what your options are, perhaps you’re exploring something called “seller financing” (also called “owner financing”). Owner financing is a little-known but very effective way to sell your house in Southern California. And maybe you’re wondering, “Is owner financing a good idea for the seller in Orange County CA?” That’s a great question and we’ll talk about it in this blog post.
Here’s How Owner Financing Works
In a normal home-selling transaction, the buyer (who doesn’t have ALL of the money for a house) goes to a lender (such as a bank) and they pay a down payment and then make regular monthly mortgage payments until the borrowed amount is paid in full.
This is the way most people are familiar with buying and selling. But there’s another way to sell your house that you might not be aware of, and it involves owner financing.
With owner financing, everything is similar except this one thing – the seller of the house acts like the bank: the buyer pays a down payment to the seller and then makes regular payments (just like mortgage payments) to the seller until the house is paid in full. Then the ownership of the house transfers to the buyer.
Many Sellers Are Wondering, Is Owner Financing A Good Idea For The Seller In Orange County CA?
Many sellers do find owner financing to be a great idea.
- They like that they have a larger group of potential homebuyers in SoCal to sell to (including those who might not qualify for traditional bank financing)
- They like that they get monthly cash flow from financing payments
- They like that they still own the house and are protected, should the seller stop paying
- They like that there is no property management
What’s not to love? You get ongoing cash flow and protection, and you’re still able to sell your house. That’s a perfect recipe. Whether this is your primary residence that you’re looking to sell, or you’re a landlord who is ready to start selling some of your rental property, owner financing might be a great option for you.
Sell My House In Orange County CA
If you’d prefer to spread out payments or to have more SoCal home buyers trying to buy your house, owner financing might be a great option for you.
With that said, owner financing is not for everyone. If you want to talk to one of our team about how owner financing might work for you, and what some of your other options are, feel free to contact us.
We buy houses in Orange County California and we pay cash for houses in SoCal. Get in touch with us today!