Seller financing options for a primary house
Hey Team,
I am looking at home for primary use that I believe I have a seller financing opportunity on. I'm thinking 30 year amortization with 5-10 year loan with balloon at end of term at 5% interest.
My ask is if this is a good financing model then what exit strategies will I have with interest rates being what they currently are and no realization of what they will be in 5-10 years went the loan is due?
I want to protect myself and my family from an increased mortgage through refinancing later. I wanted to vet all Exit strategies possible to know what options would best fit. Thanks for helping in advance.
Most Popular Reply
@Kofi Thompson
Two issues to deal with
1. Interest rate
2. More important is the equity
Many people will overpay to get a home on seller financing then realize they overpaid and cannot refinance because a lender may want 20% equity which could be a tough hurdle to overcome in the future if prices stay stagnant and you have a balloon in say 5 years.
- Chris Seveney
