Owner Financing in Florida Real Estate - What You Need To Know

If you have been browsing Southwest Florida real estate properties for sale recently, you may have noticed some sellers are offering owner financing.

What does that really mean and what should you know before signing on the line?

Owner financing on FL homes for sale enables buyers to purchase a home without having to qualify for a conventional bank loan. This is an excellent opportunity for individuals and families to take advantage of the incredible deals currently available while providing sellers an ongoing income from monthly payments.

Owner financing on FL homes for sale often comes in several different flavors.

Owner financing with a seller held mortgage allows you to gain title to the property now and make regular monthly mortgage payments to the seller.

Lease option to buy means that the tenant can lease or rent the property now with the option to buy it later for a pre-determined amount within a specific time frame.

‘Rent-to-own’ is the most common type of owner financing available on FL homes for sale. Just as the name suggests this allows you to rent a home with a portion of the monthly rent going towards the principal balance and actually buying a home.

Owner financing normally requires little or no qualifying, though every seller may go about this a little differently. Due to the ease of getting into FL homes for sale with owner financing and the great risk this puts on the seller you should expect some form of down payment to be requested. This can range from a couple thousand dollars to 20% of the purchase price. With this in mind you must be very careful about who you buy FL homes for sale from. If you are not careful you could find the seller running off with your deposit or worse - after months of payments find out you are being evicted because the seller never paid the underlying mortgage.

There are great and trustworthy sellers offering owner financing, you just need to make sure those are the ones whose FL homes for sale you are looking at. Look for sellers who are established firms that have been in business for several years and have a good reputation in the community. This should evidence the fact that they know what they are doing and will continue to be there, and will make every effort to do things right to uphold their reputation.
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