What does sellers financing available mean?
Answer:
The seller is willing to "carry back" some portion of the agreed to purchase price. Meaning, the seller will act as a bank and lend you some part of the money for the purchase out of their available equity. Essentially, they record a mortgage against the house just like any "public" bank. The seller in any given situation could finance 100% of the price (like in cases where they own the property free and clear), or 1% of the price-whatever the seller and buyer agree upon.
It means the seller is willing to finance the purchase for you. Your other options are to get a mortgage loan with a financial institution or pay cash.
owner financing is just that. the owner agrees to hold a private note on your property untill the agreed upon price is paid in full. it is useful if your credit isn't strong enough to get institutionalized financing. you may also want to check into "hard money" lenders. most mtg. brokers have these contacts
Seller financing, when used in conjunction with real property ownership, means that the owner is willing to act as a "bank" for the buyer. Often, the seller will "carry" a loan for a portion of the sales price, which means the buyer can borrow less from an institutional lender. Seller financing will be more availble as properties linger on the market longer. Be careful, however, because private lending, (seller financing) is not regulated like a bank is and therefore the seller can choose terms to his liking not necessarily to yours.
Depending on your equity position, it is possible that you may get an offer for your home with a seller-financing contingency. This type of offer may or may not be to your advantage. Due to the many variances (and possible pitfalls) involved in such transactions, it is highly recommended that you review any contract with a seller-financing contingency with your attorney and financial advisor. It depends are you the seller or the buyer? If the buyer is not qualified for the amount of $$$ loan and the seller wants to sell he/she is willing to refinance to the buyer some of the amount-act like a bank, but its not secure it can be risky.
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