Читать книгу Building Your Custom Home For Dummies - Peter Economy - Страница 88

One alternative way to finance a property is to have the property owner loan you the money or carryback paper. In this case, the seller acts as the lender and has you (the buyer) execute a note secured by the property for the amount he doesn’t receive in cash through escrow. Not every owner will consider this option. If the owner carries back the entire amount of the purchase price, the seller can’t owe any money on the property. Another way a seller can help is to carry back a second loan so that you can put down a smaller down payment. The primary lender must agree to this arrangement. In either case, the seller has the ability to foreclose if you miss payments. You need your real-estate agent or an attorney to draft the note and security instrument to make sure everyone is properly protected.

When is a seller more willing to carry the financing themselves? A seller may agree to carry paper if the property is hard to finance through banks or if they — for whatever reason — are anxious to sell. The seller may also want to defer the taxes due from the sale of the property; carrying paper allows the seller to pay taxes only as you pay off the loan. You gain no real advantage when the seller carries the financing unless the loan’s terms are more favorable than any other lender offers you. Most construction lenders require the seller to be paid off when they fund the construction loan. Few institutional construction lenders allow a subordination of a seller carry.

Some sellers want a premium if they’re going to carry paper. Furthermore, many sellers still want to check your financial wherewithal, so credit and income can still factor into their decision. Ultimately, you can negotiate the best deal with a seller if they’re getting all the money expected from the escrow, so having the seller carry may not be the best route.