Real Estate Glossary

What is Owner Financing?

Owner financing refers to a situation in which the owner of a property provides the financing for the purchase of the property. Instead of obtaining a traditional mortgage from a bank, the buyer obtains a loan from the owner and makes payments directly to the owner. This can be beneficial for buyers who are unable to qualify for a traditional mortgage, and for sellers who want to sell their property quickly. The terms and interest rates of owner financing vary and can be negotiated between the buyer and the seller.

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