Types of Seller Financing Agreements in Florida
Katty Cavalieri
??????????/????????????-?????????????????? The Cavalieri Group at RE/MAX Award Winning??Real Estate Professional. Mother of Two, Wife, Investor, and Creator of Wise MD Partners
Offering seller financing can attract more buyers and help you close the deal faster
There are various types of seller financing agreements in Florida. It requires a deep understanding of the legal intricacies and financial implications involved in each arrangement. When considering seller financing as a way to finance a home, it’s crucial to be aware of the common types of seller financing available.
Here are some key types of seller financing agreements to consider:
Owner Financing Agreement: This is when the seller takes on the role of the lender and provides financing to the buyer.
Partial Financing: In this arrangement, the seller finances only a portion of the purchase price, and the buyer secures a traditional mortgage for the remaining amount.
Lease Option: This type of agreement allows the buyer to lease the property with an option to purchase it at a later date.
Land Contract: Also known as a contract for deed, this agreement allows the buyer to make payments directly to the seller until the property is paid off. The deed is hold by the Seller until the Buyer pays off.
Wraparound Mortgage: In this scenario, the seller finances the purchase price minus any existing mortgage balance, and the buyer makes payments to the seller who, in turn, makes payments on the original mortgage.
-Katty Cavalieri