Loans of this variety are designed to assist buyers that might not have access to the immediate capital they need for bigger buys. Especially in the harsh economic climate, it’s more difficult than ever to qualify for mortgage loans.
Seller or owner financing makes it possible to finalize a loan that the buyer might not qualify for through other lending avenues. This is beneficial to the buyer because it makes the purchase possible, and beneficial to the seller because they might not ever find a buyer that could meet their asking price.
Generally, money loans are tapped during tough economic times and can be used to finance homes that candidates might not typically qualify for. Think of the money loan as a happy compromise for both parties. They are typically offered by the seller as additional incentive to the buyer.
This type of loan may be an indication that the seller is desperate for a buyer in a dry market. Be aware of the power dynamics at play in these scenarios and use them to your advantage if at all possible before closing the mortgage deal.
For more information, visit http://www.midlandmortgagecorp.com/mortgage-applications/overview