Ocala Real Estate Talk

I often get contacted by people looking for owner financing here in Ocala. What these buyers are really looking for is a way to get into a house with little money down or because they have credit issues.

Buyers seems to think owner financing is little money down and the owner finances a house like a bank. In the real world when you can find an owner willing to finance a house the seller usually wants 10 to 20% down, a higher interest rate than most banks and a 3 to 5 year balloon mortgage. A balloon mortgage being that after the term, 3 to 5 years or whatever, the note becomes due and the buyer is expected to pay it off or more realistically refinance it through a loan with a traditional lender.

Owner financing is hard to find. Buyers are at a disadvantage and have a hard time negotiating on price or interest rate. I really think this is a method of last resort.

FHA financing only requires a 3.5% down payment and is not entirely credit score driven. USDA financing can be 100% and the buyer can even ask the seller to pay all closing costs. Both these government programs are better than owner financing in my opinion.