Escrow in Owner Financing: Now What?

Here’s what happens after you’ve made an offer on your dream home

Congratulations, you are on your way to overcoming credit challenges and owning your very own home!

Once you have found your dream home in our program, an investor from our network will buy it on your behalf. You will make a portion of the down payment. The rest of the formalities are more or less similar. In other words, the process of buying with owner financing is the same as buying with a traditional mortgage.

• You will make a minimum of 15 percent down payment (in two installments).
• An escrow agency will act as an independent third party to hold the funds including deposits and process payments on the closing day.
• The down payments and deposits are applied to the purchase price of the home.
• During the escrow period, you can get a professional home inspection or appraisal conducted.
• If both the parties satisfy all the contingencies, the title is transferred to you on the closing day.
• You sign a promissory note and deed of trust. These two documents provide details the repayment plan, consequences of default and other owner financing terms.
• You will make your monthly payments to the seller (rather than a bank) through a note servicing agency. Your payments will be reported to credit bureaus and you can refinance with a traditional lender whenever you want to.

Check out our FAQ page to know the answers to some of the most frequently asked questions. Interested in learning more about our program? Set an appointment today. Alternatively, use our state-of-the-art search or browse featured listing below.  Fill up the contact form on the property listing page. A realtor from Shop Owner Finance will contact you promptly.