Owner Financed Homes in Houston
There are different financing opportunities for Home Buyers when purchasing a home in Houston, TX. One popular financing type is Owner Financing, also known as Seller Financing. This type of purchase is attractive to Home Buyers because they cut out the lengthy underwriting processes of banks and lending institutions.
Why Seller Financing
Seller financing is mostly attractive to Home Buyers because it provides a clearer path to home ownership with less hassles. Buyers wishing to purchase an Owner Financed home in Houston save money because there are little, or typically no origination fees, junk fees, lender fees. Additionally, there is no property underwriting requirements. The terms are agreed upfront so there is very little misunderstanding from all parties. The Buyer and Seller agree on several terms including possession, any temporary Seller short term leases (if applicable), as well as how much downpayment, length of loan and interest owed. In essence, the Seller becomes the lender and retains a first position lien on the property. The property in turn acts as the collateral to the loan. The purchase can be a primary home or even an investment property.
Seller Financing Addendum in Texas
In Texas, Real Estate Professionals leverage the use of promulgated real estate forms. One such form, the "Seller Financing Addendum", is commonly used for Owner Financing in Houston. We recommend each Buyer to hire a real estate attorney to advise them on the legal aspects of this type of purchase. We can complete the Seller Financing Addendum and provide you with an amortization schedule.
Finding Owner Financed Homes in Houston
When listing a property for sale, the Seller can elect to allow for Owner Financing as an acceptable financing type for their home. The Listing Agent will then select this financing type in the MLS during the initial listing upload. This allows us to filter through the Multiple Listing Service and send you properties that allow for Owner Financing via our email notifications.
Owner Financing Terms in Houston
There are no established or specific Owner Financing terms in our Greater Houston Area. Generally speaking, Owner Financing terms have several components:
- Seller may request credit documentation
- Seller may request verification of employment and salary
- Seller may request bank statements
Promissory Note can be Payable:
- In one payment due on a specific date with interest paid at maturity, monthly or quarterly
- In monthly installments including the interest or in addition to the interest for a specific term.
- Interest only monthly installments for a specific term including the interest or in addition to the interest.
- Consent Not Required by Seller - the property may be sold, conveyed or leased without the consent of the Seller, provided any subsequent Buyer assumes the Promissory Note.
- Consent Required by Seller - property may not be sold, conveyed, leased with option to purchase, or leased for longer than 3 years without the written consent of the Seller. Seller may declare the balance of the Note to be immediately due and payable.
Taxes and Insurance Escrow
- Escrow Not Required by Seller
- Escrow Required by Seller
Hire our Team to Help You with Owner Fiananced Homes
Our Team would welcome the opportunity to assit you in purchasing your Owner Financed Home in the Greater Houston Area. We can tailor your home search and provide you with different types of listings that match your criteria.