People wanting an easy way into home ownership need not look elsewhere as with vendor financing you not only get to the property early on, you actually rent to own the house through easy repayments and have a piece at owning the property with every repayment you make. So what is vendor financing anyway? how can you better understand vendor financing and how it would help you to be a home owner today? Well read on to find out how you can get through your home ownership ordeal easy and practical with vendor finance.
Vendor financing is when a home seller agrees to shoulder a portion or all of the required fees (mortgage, etc) for the property instead of having it passed to the buyer and instead decides to offer the property as rental to the the buyers. This is easy enough and light on the pockets and at times depending on the terms of the seller may not require a deposit. However putting in a deposit doesn’t lessen the value of the property but actually adds to the total value you get in return when you’re ready to make the purchase of the property after a year’s worth of renting.
Typically, a vendor financed property has the option to offer the property as rent to own under a contract that would run from 1-2 years up to a maximum of 7 years. This gives you more than enough time to come up with a bank mortgage in the event you wanted to stay and purchase the property. Typically there’s no minimum or maximum contract period, and you simply need to make a deal with your seller/owner to advice of how long you intend to stay before purchase. What’s more is that since you are within a contract, you are protected from any possible market conditions compared to variable rate mortgages that may go up and down depending on the volatile market.
Interest rates are manageable and practical compared to your typical rental schemes. You can actually negotiate something between 2-5% annually. What’s more is that with vendor financing, it’s like home ownership on training wheels, you get to pay your council fees and utility bills, just as if you own the place yourself.
Vendor financing is flexible enough that if you don’t want the house you can opt out and just got with another vendor simple as that. Depending on your taste and needs you can try to check out over a dozen vendor financed properties either online or through listings. Don’t have the house that you need? No problem, you can find more information about how you can have a rent to own property within your neighborhood and just need to contact the right people to get things going for you.
Remember, you don’t need to have a lot of money to get a home that you can call your own. Just by starting small and simple, with the an understanding of how vendor finance works you can get into your dream home in no time at all.