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ADVANTAGES OF SELLER FINANCING FOR THE BUYER

ADVANTAGES OF SELLER FINANCING FOR THE BUYER

Last week we discussed the advantages of seller financing for the existing owner.  This week we would like to point out the benefits of Seller financing for the Buyer.

Despite the elevated purchase price and higher interest rate, there are many benefits to a buyer who engages in an installment sale transaction. 

1. Easy Qualification. The buyer, in many cases, prefers an installment sale to conventional financing because it does not require traditional bank income and credit approval. The buyer may have poor credit because of a divorce or recent bankruptcy. He may be self-employed and cannot prove income. He may be new to his job and cannot meet strict lender guidelines. 

At this time, in Los Cabos, there is no U.S. financing for Mexican real estate available.


2. No Loan Costs. One of the biggest benefits for the buyer is not having to pay the costs associated with conventional loans. Points, origination fees, underwriting charges, appraisal, credit reports, title insurance and the plethora of other "junk" fees charged by conventional lenders can amount to thousands of dollars at closing. The buyer is free from these with an owner-financed installment sale. 

3. Fast Closing. A buyer can close and move into a property within days, since there is no third party lender holding up the transaction.

Many sellers are anxious to sell their property due to relocation, the economy and any number of reasons.  We, at Los Cabos Agent, encourage our selling clients to consider Seller Financing in order to implement a fast sale.

Posted: Tuesday, June 18, 2013 5:17 PM by Nicholas Fong

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