Question 1

What does the term Owner Financing mean?

Accepted Answer

Owner financing means that a seller is willing to sell his house, land, or other real estate property, for example, in Oklahoma, to a potential buyer with an agreed upon purchase price, down payment, and monthly payment terms acceptable to all parties. When a seller chooses this option, he won’t get all the sale proceeds of his house right away, but he would at a future time plus monthly interest once the buyer pays off or refinances the property.

Question 2

What are typical Owner Financing terms?

Accepted Answer

The terms an owner of a property uses in Oklahoma or anywhere else can vary anywhere from 5 to 30 year terms or more at an interest rate from 7% to 15% or higher. The down payment required for each owner financing property could vary from a few thousand down up to 30% or more of the purchase price. When reviewing the terms to these contracts, we always recommend you to hire an attorney or real estate professional, such as a Realtor, that may be familiar with these types of contracts.

Question 3

Is Owner Financing the right way to go when purchasing a house or land?

Accepted Answer

There can be a number of things to consider when deciding if this is the right fit for You as a buyer. For example, is your credit good? Are you self-employed? Where are you living at this time, in a rental or your own home? Each of these questions would have to be evaluated to see if this is the right fit. For example, on an owner financed property, you may not have to worry about a credit check and part of the monthly payment would be applied towards the principal reduction of the mortgage, verses nothing going towards the principal reduction if you are renting.

Question 4

Does buying a property through Owner Financing go on your credit?

Accepted Answer

This can vary from owner to owner and if you are buying land, a home, or some other property. Many of these won’t report your payment activity to the credit bureau, but if you needed this on your report to help improve your score or for proof in the future when you can finance your current home through a bank or lender, you can always make a request for it to be reported on your credit report.

Question 5

Is there any difference if I want to buy land and use Owner Financing to purchase the land versus buying a house?

Accepted Answer

This may vary again from owner to owner, but in some cases some owners may require less of a down payment on land than if you buy a house, due to less risk on owner financing land.

Owner Financing Land in Oklahoma with CMR Farm and Ranch Properties LLC

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TRANSPARENCY

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EVAN S.

PAM J.

KEVIN & LEA

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