VENDOR FINANCE Most of our buyers are trying to escape from renting where all their rent money goes straight out the window! There are two basic types of vendor finance where a seller, instead of a lender, provides finance to the buyer: 1/. the seller finances the buyer’s deposit 2/. the seller accepts delayed settlement over an agreed period of time – normally 24 months or longer This second vendor finance method can enable a buyer to achieve future ownership of a property without first qualifying for a home loan. It is used as a stepping stone towards a buyer obtaining their own home loan. A much smaller deposit is paid by the buyer. The buyer moves into the property and starts paying off their future home directly to the seller over an agreed period. This allows the buyer time to put right whatever was preventing them from getting a home loan. They will then be required to, or want to, refinance and obtain their own home loan to complete the purchase.
Posted on: Tue, 15 Jul 2014 13:30:32 +0000
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