The traditional means of buying a home is to get to a bank, apply for a loan, and wait for a pre-approved amount that you can spend before you start looking at homes. For some, this situation looks a lot different. One man's story can give you an idea how you might take advantage of your living situation to make an investment in your future.
Larry had been renting his home for 5 years from a neighbor who lived in the adjacent lot. Ready to make a change, the owner decided to move out of state. Wanting to sell both houses and start fresh in a new area, she placed the homes on the market with short notice to the man, who had planned on staying in the home for years to come.
The first thing the man tried was to apply for a loan from a traditional bank, where he fell short of the asking price by too far to make a reasonable offer on the home. Not letting it get him down, he approached his landlord with an idea. He asked whether she might be willing to finance the home for him instead, or “carry the contract.”
Knowing the man was trustworthy, having lived next door to him for years, always receiving rental payments on time, she quickly agreed. Although this was not something the homeowner had considered before the idea was presented to her, this situation worked out in the best interest of both parties.
Not everyone will see the same success as Larry did. But, now you should understand more about how the owner financing world really works.
Not everyone will be in such a situation, but the story goes to show that opportunities are easily overlooked. All options should be considered before giving up on your