Owner financed

There was a add for a 3 bedroom 2 bathroom house owner financed for $5,000 down in the area I saw the other day. It got me really excited because that is one of the only ways we are going to be able to get a bigger place. Dh and I really need a bigger house and that would be perfect. We have the money to put down on it no problem my only concern is that we some how end up getting screwed or something. Is doing something owner financed a good idea?

I would have it all drafted up with a lawyer and recorded. Also, you need to find out what the interest rate is. Owner financing usually has a much higher interest rate to compensate the owner for the huge risk.

Owner financing can be a great thing. It doesn't negate the need to have a contract written out, though. Just something that will protect everyone involved. I say go for it, but make sure your bases are covered and you have everything in writing, such as what stays with the house, what doesn't, how long it will be financed for, stuff like that.

You need to get a lawyer to draw up the papers and make sure everything is in writing.

Ok thanks! That is good to know. I am so tired of living in a 2 bedroom 1 bathroom house with 3 kids lol.

Quoting 1inpink2inblue:" Ok thanks! That is good to know. I am so tired of living in a 2 bedroom 1 bathroom house with 3 kids lol."

Oh and I wouldnt use the owner's attorney. I would a get a 3rd party that has no vested interest in either the buyer or the seller.

Quoting 1inpink2inblue:" Ok thanks! That is good to know. I am so tired of living in a 2 bedroom 1 bathroom house with 3 kids lol."

I know exactly what you mean. That's what I'm living in now, a 2 BR 1 BA with three kids(and a BIL)...I'm ready for something bigger.

After seeing what my friends went through, I would be sure to include a clause that states if the bank forecloses on the property that you are entitled to your deposit of $5000 back.