A couple of days ago, we discussed seller financing. Most of that information focused on the seller end of this type of financing. But what if you are a buyer? If you can find someone willing to give you seller financing, you can get a pretty good deal.

Mortgage loan terms

One of the biggest advantages a buyer can get out of seller financing is a certain flexibility in the loan terms. Even though a credit check may not be necessary, if you demonstrate trustworthiness, a seller might be willing to give you more flexible mortgage loan terms, especially if he or she is motivated to sell. You might a slightly lower interest rate, or you may have flexibility in payment or length of term.

Also, you are not likely to have to obtain mortgage insurance for your home loan when you get seller financing (although some may require it). A seller that also offers financing is usually motivated to sell quickly. This means that you can get fairly good mortgage loan terms, and you might be able to get them without a credit check!

Tags: home loan, personal finance, financial planning, finances,
advantages seller financing, mortgage loan, loan terms, seller financing