"Seller financing is a lesser-known home financing option where a seller and a buyer bypass a traditional bank loan in favor of a direct loan. In a competitive and expensive housing market like California's, buyers are looking for creative ways to get into the real estate market."
"Rewitzer, Galvin and the seller settled on a $100,000 down payment, a six-year loan with monthly payments at a 3% interest rate, and a 'balloon' payment at the end. A lawyer, a mortgage broker and a real estate agent reviewed all aspects of the deal, protecting both parties should anything go wrong."
Eric Rewitzer and Annie Galvin found their dream home in Amador County but couldn't afford it. After two months, the seller approached them with a seller financing option, allowing them to bypass traditional bank loans. This arrangement is beneficial in competitive markets, offering lower interest rates and options for buyers with poor credit. They agreed on a $100,000 down payment and a six-year loan at 3% interest, culminating in a successful deal that satisfied both parties.
Read at SFGATE
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