Owner Financing - The Balloon Process
Hey Everyone,
I recently purchased a lakefront home in NH through seller-financing with a 5 year balloon. The owner wants the full loan amount at the 5 year mark. Can someone explain to me what that process will look like? I am assuming I go to a bank and acquire a conventional loan on the full amount that I owe the seller. What does that process exactly entail?
- Do I need to qualify for the loan or is there no qualification process because I already own the house?
- I’m assuming they will loan up to about 75% of the value of the house?
Any insights are appreciated.