Some home sellers are lenders too

With mortgage money harder to get, sellers provide financing

The concept of owner financing isn't new, though it wasn't as popular when mortgage money was easier and cheaper to come by through traditional lenders. But in today's tough real estate markets, being able to finance the sale of your home can give a seller an edge.

"There are a lot of good buyers out there that can't get loans," said Dawn Rickabaugh, of Rickabaugh Realty, in Pasadena, Calif. "When you eliminate the hurdle of qualifying for a bank loan, you'll double the amount of buyers interested," she said. Rickabaugh also oversees the Web site NoteQueen.com, which focuses on owner financing.

Loans that are most difficult to get -- including jumbo mortgages and financing for commercial properties -- are ripe for seller carry-back scenarios, Rickabaugh said. But it can be done for any property type, and sellers can finance all or part of the loan, she said.
Seller financing can help buyers who may be having trouble getting a loan because they are self-employed or work on commission, for instance. It can also help someone barred from a traditional mortgage due to scarred credit -- if it can be explained, said Dorcas Helfant-Browning, principal broker and CEO of Coldwell Banker Professional, Realtors in Virginia Beach, Va.

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