Definition of Owner financing:
This type of arrangement can be advantageous for both sellers and buyers because it eliminates the costs of a bank intermediary. Owner financing can create much greater risk and responsibilities for the owner, however.
A transaction in which the property seller agrees to finance all or part of the amount of the purchase.
Owner financing is a transaction in which a property's seller finances the purchase directly with the person or entity buying it, either in whole or in part.
How to use Owner financing in a sentence?
- Sometimes, owner financing is known to help a property sell more quickly in a buyer's market.
- Typically, this type of financing is disclosed in the advertising of a property when owner financing is an option.
- Owner financing requires that the seller take on the default risk of the buyer, but owners are often more willing to negotiate than traditional lenders.
- Owner financing is sometimes referred to as “creative financing” or “seller financing.”.
- Owner financing can provide extra income to the seller in the form of interest.
Meaning of Owner financing & Owner financing Definition