Can't obtain traditional financing?  Perhaps the owner of the house you are purchasing can finance the purchase for you!  Actually...there don't seem to be too many owner financing opportunities available.  Searching our local MLS, I'm finding five properties in Harrisonburg and Rockingham County that are advertised as having owner financing opportunities....



(1)  3318 Friedens Church Road - 3 BR, 3 BA, 2700 SF, $326k
(2)  216 Emerald Drive - 3 BR, 3.5 BA, 2581 SF, $199k
(3)  150 Inglewood Court - 3 BR, 2 BA, 1408 SF, $178k
(4)  1380 J Hunters Road - 2 BR, 2 BA, 953 SF, $57k
(5)  1372 J Hunters Road - 2 BR, 1 BA, 837 SF, $47k

In many (not all) cases, an owner that can provide owner financing either owns the property outright (no mortgage remains), or has a low balance on their mortgage that they can pay it off entirely.  Then, with no mortgage in place, they'll expect some portion of the purchase price from you as a down payment, and the rest will be repaid over a term and on a schedule negotiated between you and the owner.  Most owner financing scenarios are not 30 year arrangements, but may involve owner financing for 5 or 7 years, with a balloon payment at the end. 

To be more specific --- a $200k purchase might involve a $20k down payment, and then the $180k balance amortized over 30 years at 6% interest, but with a 5 year balloon.  This would mean that you'd pay a monthly payment of principal and interest as if the $180k loan were stretched out over 30 years, but after 5 years you would have to pay off the entire remaining balance of the loan.  Typically the balloon payoff is accomplished by refinancing the property with a traditional lender at some point prior to when the balloon payment is due.

If you own a property, and are trying to sell it, and could offer owner financing --- do it!  There aren't too many properties with this option readily available, so you might entice additional buyers if you can offer to finance their purchase.  If you're a buyer looking for owner financing, you'll probably need to approach owners (in addition to the five above) who aren't offering owner financing, to see if they can or would consider it.

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Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com