Seller Financing Mortgage – First and Foremost, this isn’t a rent-to-own, lease-to-own, agreement for sale, nor a lease option website. What Amansad Financial Services Inc. provides is an alternative that will allow you to get a mortgage and secure property ownership from Day 1, and not 2, 3, or 4 years later. You will hold title as property owner. The concepts may be similar, but there are vast differences.
Amansad Financial Services Inc. has created a strong reputation over the years as a place to find solutions for your financing needs. We specialize in helping clients who are having a difficult time putting together the financing they need to buy their first home, an investment property or a foothold in commercial real estate. Our network of private lenders has found many partnerships with individuals and businesses looking to enter or expand their holdings in the real estate market.
Seller Financing Property
Over the past five or six years, the seller finance mortgage has become an increasingly popular financing vehicle, and this site is dedicated to helping clients navigate the ins and outs of seller finance as opposed to rent-to-own situations. Buyer and seller both benefit from a seller finance mortgage as opposed to a rent-to-own or lease purchase situation. Here are some of the primary advantages:
From the seller’s perspective:
If you’re a landlord, you have to take care of the property for the tenant. If the foundation cracks, the furnace goes out, or the roof flies off in a windstorm, you are on the hook for the repairs. You can add a repair per-service fee to your lease, but you are still responsible for the rest of the costs. That $50 fee doesn’t cover a lot of the financial damage when you need to put in a new hot water heater, for example.
People who rent aren’t quite as reliable as borrowers. They don’t view the home as their own, and so they don’t do the same sort of upkeep that they would if they were the owners. They also are a little more likely to fall behind on payments, because it doesn’t affect their credit like late mortgage payments do.
From the buyer’s perspective:
When you rent, you’re just pouring money down the drain each month. You’re not responsible for repairs, but you’re also not building any equity. With a seller finance mortgage, each payment brings you closer to owning that house free and clear. You will need to put aside some savings for repairs, but this is a better way to get into the real estate market. You will need to save at least 5 percent down (and in many cases 10 percent) to enter a seller finance mortgage, but that’s a good way to build the sort of financial discipline that will prepare you to sock away money for repairs and other contingencies.
What We Do
At Seller Finance Mortgages, we don’t negotiate rent-to-own agreements or Agreements for Sale. There are other brokers who do those sorts of contracts, but we don’t, and there are several reasons why.
First, rent-to-own agreements can turn out to be difficult to work with if things go awry, on both ends. While Canadian law tends to favor the tenant over the landlord, because of a legal philosophy that dates all the way back to reforms that began in Renaissance England, the simple fact is that these agreements are dicey. Courts are not as willing to get involved in a black and white way with these as they are with mortgages, because the laws are not as clear. So neither the landlord nor the tenant has as clear a protection of their own situation.
Seller Financing Real Estate
Second, we believe in helping people use the real estate market to improve their own financial situations. If you are a seller, then you can turn a property into a reliable stream of income with this sort of deal. You’ll like this much more than a lease, because you still get your money (with interest) without having to manage the property. The interest rates are higher than what you will find with savings accounts and certificates of deposit, but you’re not taking on the levels of risk that are at work in the stock and commodity markets.
If you are a buyer, this sort of deal gives you the chance to own your own property. Too many people rent homes that drain their finances without giving them equity in a property or the ability to even set aside enough money for a down payment, because they max out their capability to pay by renting the priciest house possible. That may work in the short term but is not good for long term financial viability.
Call one of our seller finance mortgage specialists today!