Benefits of Seller Financing

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Why sell with seller financing

Simply, you make more money buyer selling with seller financing. We have over 1200 buyers in our seller financing database. These are buyers with a sizable down payment but cannot currently qualify for traditional bank financing. The only way they can be a homeowner is for a seller to provide financing. View our EXAMPLE to see how much more profitable selling with seller financing is over selling your home traditionally.

Sell Faster.

  • Make profits on the sales price and the monthly cash flow.
  • Reduce your competition. Very few sellers offer financing.
  • Close faster.  With no bank involved closing can occur much faster.

Invest in an asset you know

When you sell your home with seller financing you become the bank.  Your home becomes the asset that secure the loan you provide to the buyer.  What better asset to secures your loan than the property you have known and owned for years.

Twice the profits

  • Profit from the sale of your home: Sell for a higher price.
  • Profit from interest income:  Earn monthly income for years to come.

Higher sales price

Homes sold with seller financing consistently sell for 5% to 10% more than homes not offering seller financing.

Income stream after the sale

Once you have sold your home you become the bank.

  • You earn income on the interest the buyer pays on the seller-financed mortgage.
  • If you have a mortgage in place you make interest on the difference between the interest you collect from the buyer each month and the interest you pay to your mortgage company each month.

Eliminate the competition

Currently, less than 3% of homes for sale in the Phoenix MLS offer seller financing.  Buyers who can't pay cash or qualify for traditional bank financing are restricted to only buying from this 3% pool.  By offering seller financing you are competing with only a few neighboring homes to get your home sold, not the thousands most sellers compete with.

 

 

FAQs

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Where do you offer your seller financing services?

  • Phoenix, Arizona (and all outlying area of the valley).
  • Sedona, Arizona.
  • We can help sellers in other parts of Arizona on a limited basis.

Who collects the monthly buyer payments?

  • Account servicing.

What if the buyer doesn't make their monthly payment?

  • Default services.

What if I already have a mortgage on the property?

  • Title companies will allow you to leave your underlying mortgage in place and create a new mortgage to sell to the buyer needing seller financing.

What if I have an due on sale clause on my existing mortgage?

  • A due-on-sale clause stipulates that the full balance of the loan may be called due (repaid in full) upon sale or transfer of ownership of the property used to secure the note. The lender has the right, but not the obligation, to call the note due in such a circumstance.

What if my lender calls the loan due?

  • This is very unlikely.  Arizona Seller Financing has been involved in hundreds of transactions without the lender even threatening to call the loan due.
  • If the lender does call the loan due.
    • Contact the buyer to see if they are ready to refinance and pay you off.
    • Pay off your mortgage (if you have the cash reserves to do so).
  • Use our Due on Sale BUY-OUT SERVICE.
    • Contact us and we will buy your note for cash (usually at a discount)