Some states such as Texas disallow owner financing. This doesn’t mean a buyer can’t obtain owner financing, however. What it does mean is homes sold in this manner must go through an investor or investment group and that means paying commissions to someone. Before you seek out owner financing, call your state’s real estate board and have someone explain the owner financing process in your state.
Make sure you read all agreements and contracts in full and if the seller agrees to anything such as repairs, make sure all items are contained within the agreement along with remedies available to you if the seller fails to complete any items.
Because I've been through owner financing in many transactions, it seems to me the naysayers are real estate agents and attorneys. Why? Too many home seekers fear the words "owner financing" and hire real estate attorneys or seek out the advice of real estate agents, and those people, don't work for free.
You can skip this paid advice, but I'm wondering how many of you out there are paying high fees when you could have completed the transaction on your own? Or, how many of you have tried owner financing only to find out behind the owner stands a greedy real estate agent with their hands out and an attorney "friend" waiting to take a peek at contracts before you sign them?
Lastly, many owner financed homes are a broker transaction. How can you tell? If the home stips come with homeowners association fees (HOA) or are part of an unfinished development, this means the builder or owner of these homes dropped out for some reason or another, so there are the hidden wrap around loan fees to deal with.
It would be interesting to hear how many of you have started the process of owner financing, only to get burned? Leave a comment and yep, you can remain anonymous!