Fairfax County VA Home Search Website Blog

A traditional bank loan isn’t the only way to purchase Fairfax County VA homes for sale, even if you have less than perfect credit. One of your options is owner financing. Owner financing happens when the seller chooses to carry all or part of the loan on the home.

This is a great situation for buyers because the down payment is flexible, closing costs are lower, and they can get into the home quicker. Sellers also benefit from tax breaks, a shorter listing term, and often a higher sales price. There are three main types of owner financing.

• Land contract. In this situation, you make payments directly to the seller for the property. The contract is valid until either the loan is paid in full or you secure your own financing. At that point, the deed is transferred to you and you become the legal owner of the property.
• Promissory note. A promissory note is a legal agreement for a buyer to make payments to the seller. Promissory notes are commonly used when the seller has a mortgage on the property because it gives them some measure of legal protection. If you do not make your payments, the seller has proof of your agreement and can attempt to recover their money.
• Lease/purchase agreement. With this arrangement, the seller leases the property to you and gives you equitable title. Once the lease purchase agreement is fulfilled, you receive the title. To fulfill the lease, you either get your own loan or pay cash to the seller for the remainder of the purchase price. Of course, you also receive credit for the payments made during the lease period.

Don’t let financing worries keep you from purchasing Fairfax County VA homes for sale. I can help you find the right real estate for you and help you obtain financing. Call me today at 703-909-3939 or drop me an email at Steve@HomeSearchWebsite.com.

Steve Hawkins
Long and Foster REALTORS®
Springfield, Virginia
www.HomeSearchWebsite.com
Steve@HomeSearchWebsite.com
703-909-3939