If you are looking to buy a home in the Calgary area but are having a difficult time qualifying for a bank loan, you can still purchase a home through a number of lending solutions. One of these in Calgary is Owner Financing, in which the person selling the home to you also acts as your bank, and you make your monthly mortgage payments to that person instead of to a bank. It’s similar to the relationship you would have with a landlord, in that you make payments directly to that person every month, but you get the benefits of home ownership, just as you would if you were going through a bank for your mortgage.
Seller Financed Homes Calgary
In Calgary, there are many homes that you can secure through seller financing. You might be tempted to think that these homes are generally in the poorer parts of town and have less quality to offer because the majority of people who go through seller financing cannot qualify for bank financing. While it is true that there are many homes listed with owner financing as an option in the lower end of the property value spectrum, it is also true that the other end of that same spectrum also features properties whose owners are willing to finance the mortgage themselves.
The reason for this is that many of the people who are looking to provide owner financing for properties already own those homes free and clear, or they have very little left on their mortgage balance. This means that they have the financial flexibility to take a down payment from you and then lend the rest of the money for the home purchase. Over the term of this loan, while you’re making your payments, the idea is that you also work on improving your credit, so that when you come to the end of the term, you can get a bank or other lending source to take the balance of the loan.
Several mid-range and luxury properties in Calgary have been listed with owner financing available over the past couple of years. One four-bedroom property that had listed at $589,000 featured such top-flight amenities as granite counters, paired ovens and other kitchen appliances geared for a luxury lifestyle, with a spacious master bedroom suite, complete with walk-in closets. That property did require a 20 percent down payments, but a down payment closer in line to what the conventional lenders want is common with some owner financing scenarios, particularly when the sellers have a remaining balance on the mortgage. Also, they want some additional security that buyer will be able to make the mortgage payments on time.
One particularly attractive home offered in Calgary with owner financing was an estate on two acres, listed at $2.5 million. There was a wealth of upgrades throughout the home, with an updated interior and gorgeous landscaping throughout the grounds. The owner was only asking for a 10 percent down payment to be considered for financing.
Seller Financing in Calgary
Even the most luxurious homes are occasionally available with seller financing. This home lists at $2.5 million, but the seller will work with you even if the bank has declined your application. This estate sits on two acres and features a wealth of upgrades both throughout the interior of the home and in the landscaping all over the property.
If you are interested in pursuing a home purchase using seller financing in Calgary, there are many properties available at a variety of price points. More and more sellers are motivated to get out of their houses as soon as possible, what with pending moves and the shaky nature of the real estate market, especially in terms of buyers who have the funds to take on a loan but lack the bank approval to get into a mortgage. Talk to one of our mortgage specialists at Amansad Financial today!