Buyers Frequently Asked Questions
What is Owner Financing When Buying a Home?
A small percentage of home sellers might opt for owner financing, essentially acting as a lender to a home-buyer. Instead of borrowing from a traditional bank to buy a home, the home-buyer agrees to repay the seller for the balance of the home's sale price. This type of sale and financing arrangement is also known as seller financing. It involves a land or sales contract, a promissory note and a deed, to set up.
What is a Promissory Note?
A Promissory Note is a legal form that documents a loan between two parties. It enforces a borrower's promise to pay back an amount of money to a lender within a specific time period.