Mooers Realty Maine Real Estate Blog
Maine Homes With Owner Financing, It Happens.
Maine homes with owner financing, a seller willing and able to carry a mortgage if you sign the promissory note.
Work out the terms to repay the debt on the property you move into that has a mortgage given back to the owner of the Maine home.
In states where the house prices are too many zero places big and the repayment would be too long, too large for the buyer, Maine homes are cheaper.
The payment for the property home listing buyer in Maine is not going to choke the purchaser. Squash the real estate deal.
Because all the Maine homes are so much lower cost. More for the money happens in Vacationland. It's just cheaper to live here.
It's a case of everything you know about house values where you live now, divide by three, four or more in Maine. Way way less expensive than where you may hang your hat now to live than if in Maine where homes are affordable.
Just had a real estate closing in Maine on a home that was an estate sale.
Not a bad two bedroom Maine ranch home that was built back in the 1980's. The retired owner who moved from Connecticut liked to fish, hunt. Wanted to be off the beaten path. To stretch his fixed income monthly checks and slow down.
To enjoy life before parts wore out and ended. Doing more than just eat, sleep, work, chasing the dollar.
The daily grind of 8-5 head to keep the wolf from his door to pay the bills. His head above water on the financial end of obligations.
The fellow had no children, wife and passed away in peace making my entrance needed to the story as a Maine real estate broker.
The deceased owner owned a neat two car garage built ten years ago to complete the simple, modest package. A Maine home with hidden year round location surrounded by trees in a small town of under 75 people.
Just what he needed for retirement and to not bother any one. Or have anyone bother him. His neighbors the four legged furry type that don't talk much. Keep to themselves for the most part. No problems social distancing in Maine and lots around us for entertaining yourself.
Had a young man who had returned from being out west in Colorado needing some Maine real estate.
Not very well established credit wise but with a good job in Maine. And the house loan started out with his Dad, step Mom remortaging their Maine home.
But because it was a double wide, that method of financing to buy junior this small Maine country home hit a road block.
The attempts for a FHA loan and the requirement minimums made this Maine home not such a hot candidate for a picky mortgage underwriting home buying process.
So before $450 for an appraisal of hard earned money was shelled out for the give it a go for the home loan mortgage program looksie inspection, valuation, we had a talk with the buyer, owner.
A nephew, his mom who did not need the money from the Maine home sale were in charge of the estate sale.
Would be making under 1% if the proceeds were put into a savings account. If it was cashed out. And we are only talking a low $20's price bracket Maine housing scenario here folks.
The Maine home buyer could come up with a down payment, avoid the bank moirtgage lending closing costs. The paint peeling surfaces, change a zillion little things to comply with the bank loan all removed from the hassle of the loan underwriting requirements. And maybe he could not get a home loan with all the fine print regulations attached to the dog and pony.
Instead custom make a payment that fit his monthly budget to a tee. Owning the Maine real estate in less than 6 years.
Simple straight forward little business transaction between the parties.
No bank loan arranger invited to the Maine real estate closing get together.
Dealing direct with the owner, no middle man bank layer piece needed to the property buying puzzle.
No 15, 20, 30 year mortgage on this Maine home starter property needed with owner financing, the small price tag dangling off it.
So delays with the secondary mortgage market bank financing, all those hoops to get the money simply removed, eliminated. Poof. Gone. And the owner financing Maine home option rolled in, picked to do what needed to be done. Without a big time delay, money wasting production.
Usually owner financing Maine real estate is land only.
A property acreage to set up a seller contract with an installment sale, owner financing. With both buyer and seller provided an amortization schedule to follow along. Checked off as payments are made and received. So each year what was applied to the mortgage interest, principal amount is known.
And no prepayment penalty if the Maine home paid off early.
Or if larger payments are made along the way to hurry up the end of the mortgage hanging over the property listing.
Mainers don't like debt. Manage our money a little smarter because we work harder for it. We are the 46th lowest state for foreclosure, repossessions, foreclosures because of it. And the low prices of Maine homes, other real estate listings does not hurt getting them paid off quickly.
Bank mortgage loans in Maine are the norm for locals or many selling out of state have cash to buy in Vacationland.
But half down, pay off the rest in two years or less with a short bridge mortgage with the seller or estate. Set up lots of those that are designed to close the gap between buying in Maine now, selling old home down country shortly after that. Maine homes with owner financing, it happens.