What exactly does it mean when a house is for sale by owner and it says seller will finance?

Does it mean they are the ones that approve your loan? Are they usally stricter or more leniant than a financial institution?What exactly does it mean when a house is for sale by owner and it says seller will finance?
Owner financing (also called seller financing or owner carry-back) is when the seller of a property allows the buyer to pay all or some of the purchase price over time. Typically, the transaction is set up as a private mortgage which means that the seller holds a lien on the property 鈥?just like a bank. In many situations, this may be an optimum solution for both the buyer and seller.





With owner financing, sellers have the opportunity to attract a larger number of buyers, and overcome potential valuation problems, which can result in a higher sales price of their home. Buyers can obtain a mortgage when they might not qualify for one otherwise, and can achieve lower closing costs which could result in thousands of dollars in savings. ';What exactly does it mean when a house is for sale by owner and it says seller will finance?
It means the owner will act as the bank. Make sure you have a good real estate lawyer draw up the mortgage giving you all the rights the bank would in case of default. Some sellers will finance and if your 1 day late, they will foreclose. If you can get a conventional loan through the bank, you may want to pursue that route instead.


Good Luck
That means you pay them. But if they don't pass through your payments to their borrower you could lose everything. Check to see that they own it free and clear, if they don't have your payments go through an account that pays the old mortgage first. Make sure you file a deed that notifies people of a change in owner.
that is a great question to which I have no answer.
It means the seller will lend you the money, on a contract for deed.





Generally, they'd be more lenient, but not necessarily.





Be aware, if you defaulted, your rights are not nearly as good on a contract for deed as compared to a bank mortgage. In most cases, they can padlock the door within 60 days, where with a normal mortgage, you could be in the home for almost a year after stopping paying before the bank could remove you.