Refinancing your mortgage in owner/seller financing: Is it possible? - Buyer Investor Match



One of the best advantages of owner financing is that you can get the seller to customize the terms and conditions of the loan. When you are taking out a mortgage from a conventional lender, you have to comply with a set of ‘rigid’ repayment terms that are usually the same for each and every borrower. On the other hand when you borrow from the seller in an owner/seller financing arrangement, you can customize everything and specify how you want to repay the loan. Needless to say the seller should also agree to these terms.

Note: If you want to know how mortgage payments work in owner financing, check out this article: How mortgage payments work in owner financing: A comparison

Here at Buyer Investor Match, we help people who can’t take out a mortgage from a bank due to credit-challenges buy homes of their choice with owner financing. An investor from our network buys the home and resells it to the buyer usually on the same day. We try to make the seller financing arrangement suitable to buyer as well as the investor in a win-win situation and the flexibility of customizing the agreement helps us achieve this.

While a lot of terms can be customized, one of the best features our program offers is that the buyer can refinance in a few years. Let’s discuss how this feature can greatly benefit you:

What is refinancing and how it works in an owner financing arrangement?

As a credit-challenged buyer, you will pay a slightly higher interest rate to the investor then what you pay to a conventional lender. Let’s say for example you agreed to pay an interest rate of 7.5 percent to an investor from our network when buying a home of your choice. You are buying in an owner financing arrangement because your mortgage application was rejected by a conventional lender who offers a mortgage at a 5 percent interest rate. (Check out these 5 weird reasons why your mortgage application can be turned down by a bank).

So you are basically paying 2.5 percent more to the investor. When calculated in totality, it will increase your mortgage payment by just a few dollars a month, but you may still be bothered about it.

In that case, our program offers a great option: Refinancing. It means that you can refinance your loan with a conventional lender whenever you want. So what is refinancing?

You want to buy a home with owner financing probably due to your low credit score or some other reason such as non-verifiable income or lack of social security number, right? Our program will help you build your credit. If you stay current on your monthly payments to the investor, your credit score will improve. In a few years, it will go up to a point where you can easily qualify for a conventional mortgage. At that point you may wonder – “Why should I pay a 7.5 percent interest rate when I can borrow from a conventional lender at 5 percent?” Well, the refinancing option will help you switch the loan.

For refinancing, you will approach a lender and get him or her to replace your loan in our owner financing arrangement with a new loan. Now you will pay off the loan you took out from the investor and benefit from a lower interest rate.

There are two types of refinancing:

  1. You can refinance for getting a lower interest rate
  2. You can cash out the equity with refinancing. It means that if your home has appreciated in value, you can borrow against this equity (by taking out a mortgage more than you owed) and use the cash to pay off your other high interest rate loans such as a credit card debt.

Interested in knowing more about our program? Just click on the ‘GET STARTED’ button below to set an appointment with us using our online scheduler…

3 Steps to Homeownership

With No Credit Check or Income Verification
SCHEDULE : · Schedule a time to meet with us and learn how our proven system works.
PICK : · You pick any home you want, even a brand new home.
RECEIVE : · Get the keys to your dream home and a deed in your name with as little as 15% down.
Araceli and her family relocated from California. Self employed and unable to qualify for a loan, they used our program to get owner financing on a brand new home.

Three Steps to Homeownership

SCHEDULE : Schedule a time to meet with us and learn how our proven system works.

PICK : You pick any home you want, even a brand new home.

RECEIVE : Get the keys to your dream home and a deed in your name with as little as 15% down.