Owner Financing Questions, Answered
Straight answers about owner financing, qualifying, closing and owning your home. Don't see yours? Ask in the form.
The program
What is owner financing?
Owner financing means the home purchase is financed directly instead of through a bank. You sign a promissory note and a mortgage or deed of trust, the deed is recorded in your name at closing, and you make fixed monthly payments on the note.
Is this a rent to own program?
No. You own the home at closing, with the deed recorded in your name. Rent to own leaves the seller on the deed until you buy later. See owner financing vs rent to own.
Is owner financing safe for the buyer?
It is when the deal closes the right way: through a title company or closing attorney, with the deed recorded in your name and the terms in writing. That's how every closing in this program works.
Are there agent commissions?
No. We aren't real estate agents or brokers. You pay your down payment, normal closing costs and the usual costs of owning a home.
Which states do you serve?
Florida, Georgia, Alabama, North Carolina, South Carolina and Maryland. Each state page explains local closing costs and tax breaks.
Qualifying
Is there a minimum credit score?
No. A low score on its own won't disqualify you. Income, down payment and your recent payment history matter more.
How much do I need to put down?
Normally 20 percent of the price we negotiate, with exceptions reviewed one by one. Earnest money from your offer counts toward it.
Can I qualify with an ITIN?
Yes. See buying a home with an ITIN.
Can I qualify after a bankruptcy?
Often, yes, with no fixed waiting period. See buying after bankruptcy or foreclosure.
I'm self-employed. What do you need?
Recent bank statements, tax returns, 1099s or a profit and loss statement. Whichever shows your real income best. See self-employed buyers.
Picking a home and closing
Can I choose any house?
Any home you'd actually live in, priced from $250,000 up, that we can negotiate. Listed homes, for sale by owner, builder inventory and off-market homes all work.
How many homes can I pick?
Three. We approach your first choice first, and if that seller says no, we move to the next one.
Who handles the closing?
A title company or closing attorney, depending on the state. Georgia and South Carolina closings involve an attorney, and North Carolina closings are normally handled by one.
How fast can I move in?
Once we've agreed on a home and terms, closing usually takes 30 to 45 days.
After you own the home
Is there a balloon payment?
No. Your payment is fixed, and there's no date when a large lump sum comes due.
Can I pay it off early?
Yes, anytime. There's no prepayment penalty, and most buyers plan to refinance into a regular mortgage once their credit and history are strong.
Who pays property taxes and insurance?
You do, as the owner. Because the deed is in your name, you can usually claim your state's owner-occupant tax break.
Can I sell the home later?
Yes. The note is paid off from the sale at closing, and the rest of the proceeds are yours.
Still have a question?
Send your details and Freddy will answer it personally within 24 hours.
- The deed is in your name at closing.
- There is no minimum credit score.
- Self-employed and 1099 income both count.
- ITIN holders are welcome.
See if you qualify
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