Selling Your Jacksonville, FL Property Via Owner Finance

As you have landed on this blog post, the chances are that you might be looking forward to selling your property in Jacksonville.

And the thing is, you may always decide to sell it the traditional way.

However, that’s not the only option you have.

You may also sell your Jacksonville, FL Property via Owner Finance.

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But the thing is, not many people are familiar with the topic and know what it’s all about.

And that’s exactly what we will be taking a look at here.

In this blog post, we will help you understand what owner financing is and its pros and cons.

Well, then!

Let’s get started.

What’s Owner Financing?

Commonly referred to as “Seller Financing,” Owner financing is when you, the buyer, will be holding financing for the home buyer.

In this case, the buyer won’t have to get a loan from a bank or a traditional lender.

Most of the time, seller or the owner of the property receives down payment from the buyer.

Each of the parties gets themselves involved in a binding contract like mortgage or promissory note, thereby outlining the financial arrangements.

Also included are monthly payment amount, interest rate, responsibilities of each of the parties, and the timeline for loan repayment.

It’s not much different than bank financing.

The buyer will be subject to repaying the loan via monthly payments. The terms are decided prior to getting into an agreement.

It’s less common than the traditional method.

However, it’s a viable alternative.

Did you know that a massive $25.9 billion owner-financed loans were issued in the year 2018 in the USA?

That’s correct.

If you are wondering whether there are any restrictions in place about who will be subject to owner financing or the kind of property that can be sold with it, then don’t worry.

There are none.

Real estate investors more commonly use it. However, if you are a traditional buyer, you can opt for it as well.

Let’s take a look at the pros and cons.

Pros & Cons of Owner Financing

Pros for Buyers

Listed below are the pros of selling your property in Jacksonville, FL via owner financing for buyers:

  • Cheap closing: No appraisal costs or bank fees
  • Fast Closing: The buyer won’t have to wait for the bank loan officer, legal department, or underwriter to proceed forward with the application and approve it.
  • Flexible down payments: No government or bank-required minimums
  • It’s the best alternative for buyers who aren’t able to get financing easily: If a buyer is facing a hard time securing a mortgage, owner financing is the solution.

Pros for Sellers

Let’s take a look at what, you, as a seller will be subject to with owner financing:

  • Good investment: You may earn a better rate on the amount that you raised via selling your home.
  • Sell as-is: No need to make costly repairs which is a major requirement by the traditional lenders
  • Retain title: In case of a buyer default, you will be able to keep the down payment and the money paid. Also, let’s not forget the house.
  • Sell faster: You won’t have to worry about your house being listed being on the local real estate market for like forever.

Well, that’s just the advantages we took a brief look at.

Let’s take a look at the cons.

Cons of Owner Financing

Cons for Buyers

Listed below are the cons of owner financing for buyers:

  • Higher interest: Well, you will likely be subject to comparatively higher interest rates
  • Due-on-sale clause: In case the seller has a mortgage on the property, then the lender or the bank may require the seller to immediately pay the debt upon selling the house to the seller
  • Will require seller approval: Buyer will have to schedule further discussions with the seller in order to get his/her approval.

Cons for Sellers

Let’s take a look at the list of cons for the sellers, i.e., you.

  • Default: What if the buyer stops making the payments? If this happens, you will have to go through the foreclosure process yourself
  • Dodd-Frank Act: Under this act, some new rules were put in place for owner financing. There might not be an option for balloon payments. You’ll most probably have to include a mortgage loan originator
  • Repair cost: In case you take the property back, you will, yourself, have to pay the maintenance as well as repair costs


Here’s a table to help you understand the usage of seller financing between the years 2009 and 2017:

Change +27.5%+15.5%+7.4%+7.4%-8.9%-8.3%-7.5%
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Selling your home has never been easier.

And that’s what our experts at BuyingJaxHomes, are here to help you out with.

Feel free to get in touch with us, and we’ll be at your assistance straight away.

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