Imagine you want to buy a house but can't get a regular loan! Owner financing is like getting a loan directly from the person selling the house. It's helpful for people with bad credit or not enough money for a down payment. It's also faster and cheaper than a traditional mortgage.
- The seller becomes your lender.
- You pay them monthly, just like a bank.
- There are different types: second mortgage, rent-to-own, wraparound loans, and land contracts.
| Type | Explanation |
|---|---|
| Second Mortgage | You get a regular loan, plus a loan from the seller. |
| Rent-to-Own | You rent, then buy later; rent helps pay for the down payment. |
Owner financing can be risky for both buyers and sellers, so it's wise to get advice from a grown-up who understands these things before you start!
