Property Vendor Finance
Vendor financing has two main advantages to the aspiring property owner, no matter whether it is your first home or your 50th investment property. The advavtages are comprized of interest rate payable and terms of the payment schedule.
Regardless of being a Vendor or purchaser this type of credit can be used to your advantage to out perform traditional credit sources and traditional property sales methods.
Vendor Typical Scenario's:
Can't sell property
. property market sliding in your suburb
. too few purchaser in this market segment eg. top end of market
. agent won't get off his bum
. property physically has some off putting feature
. property in need of renovation to make it attractive but won't get money back
To make your property saleable it is necessary to take control of those factors that you can influence. Such as the desireability of your property [ i.e. presentation and buy-ability] and exposure of your property to suitable purchasers.
Vendor financing will do nothing for the physical presentation of your property but will for its buy-ability. Offering this type of finance will increase the number of buyer's by a factor of at least 2x if they are made aware of it's potential for them. At this stage the buyer and seller market is generally uneducated as to its benefits, so you may need to point these out to your potential purchasers. The increase in factor size 2x's or 10x's is determined by the way you structure the finance offered.
To find a suitable site that specilizes in this type of vendor problem solving you could visit we buy houses or if you need help with property marketing you can click here or here for FSBO help. You can list your property for free here on a vendor finance friendly site.
Purchaser Typical Scenario's:
Unable to Purchase property
. Have less then perfect credit
. Don't meet banks qualifying criteria
. Don't have sufficient deposit
. Mortgage insurance will cripple the budget because of the high lending to valuation required to purchase
A vendor financed property can circumvent these problems as you are not dealing with a bank, [their fee's... their stringent policies] mortgage insurer, or anybody too concerned about a telco bill that was not paid on time because they never sent it to you.
A property can be vendor financed directly by the vendor of the property or by a third party who specializes in this type of financing. [they act as an intermediary in the purchase/payment process]
A vendor financed property will typically leave say 20% in the deal for 24 to 60 months this will allow access to a low doc loan without mortgage insurance or going to visit the liberty or bluestone sharks. A vendor who is willing to offer finance is usually very willing to bend the deal to make it work for you so it is to your advantage to discuss your particular circumstances with the vendor and thrash out a deal which works for both of you. The terms of the deal will be more important to you then the price.
To find property that is forsale and is vendor financed by the Vendor you can go to a specialist web site that lists this type of property such as hot-properties . To apply for a vendor finance loan you could go to a reputable lender such as ezy home loan .