.png)
Frequently Asked Questions
FAQ
Clear answers about owner financing, terms, repairs, and the process. We don’t run credit checks or collect documents upfront—but homes are sold as-is and availability changes often.
About Owner Financing FAQ
1. What is owner financing?
Owner financing (also called a contract for deed or land contract) is a way to purchase a home directly from the seller without using a bank mortgage. Instead of borrowing from a lender, the buyer makes monthly payments directly to the seller under a written agreement. Once the full purchase price is paid, ownership is transferred to the buyer.
2. Do I need good credit to qualify?
No traditional bank credit check is required. Qualification is primarily based on your down payment and ability to make the monthly payment.
Not every applicant is approved, and approval depends on the specific property and terms.
3. Is this the same as rent-to-own?
No. These are not rent-to-own homes. With owner financing, you are purchasing the property under a contract for deed. Monthly payments go toward the purchase price of the home, not rent, and you are responsible for the property as a homeowner rather than a tenant.
4. Are you the owner of the homes or an Agent?
Low Down Homes Now is an independent marketing platform that connects buyers with owner-financed homes. We are not a real estate brokerage, we don’t represent buyers, and we don’t provide lending or credit approval. Terms and availability vary by home.
The Process FAQ
1. How does the process work?
The process typically follows these steps:
1. Pre-Qualification
You submit a short inquiry with basic information such as location preference, down payment amount, and target monthly payment. This helps determine which properties may be a fit.
2. Property Review / Viewing
Once a property is identified, buyers are encouraged to review the home and confirm it meets their needs before moving forward.
3. Secure the Home
To move forward, the buyer submits the required down payment and signs the contract for deed agreement.
4. Move-In
After the agreement is executed and funds are received, move-in can typically occur quickly, often within days.
2. How long does it take to move in?
There is no bank underwriting or mortgage approval process. Once the agreement is signed and the down payment is received, move-in timing is typically fast compared to traditional home purchases.
3. What documents do I need?
Documentation requirements are minimal compared to a traditional mortgage. Specific requirements are reviewed during the qualification process.
4. What about closing costs?
Homes offered through our contract for deed program are sold with clear title at the time of sale.
There are no traditional lender underwriting fees. Any closing or document-related costs, if applicable, are disclosed before signing and vary by property and market.
Payments & Terms FAQ
1. How much is the down payment?
Down payment amounts vary by property and condition. Most homes require a down payment, which is due at signing and applied toward the purchase price. The exact amount is listed on each property page.
2. Are monthly payments fixed?
Yes. Monthly payments are fixed for the life of the agreement. There are no adjustable rates or balloon payments unless explicitly stated in the contract.
3. Who do I make payments to?
Payments are made directly to the seller according to the terms of the contract for deed.
4. Can I pay off the home early?
Yes. Buyers may pay off the remaining balance early with no prepayment penalty. Early payoff terms are outlined in the agreement.
5. What does my monthly payment include?
Monthly payments generally include principal and interest. Tax and insurance handling depends on the specific agreement for that home and will be outlined before signing.
Repairs & Condition FAQ
1. Are the homes move-in ready?
Some homes are move-in ready, while others may require repairs or updates. All homes are sold as-is. Buyers are encouraged to inspect the property and complete their own due diligence before signing.
2. Who is responsible for repairs and maintenance?
The buyer is responsible for all repairs, maintenance, and upkeep after purchase. This is similar to owning a home with a traditional mortgage, not renting.
3. Can I renovate or improve the home?
Yes. Buyers may renovate, update, and improve the property according to their preferences, subject to local regulations.
4. Am I allowed to inspect the home?
Properties may require updates or repairs, and buyers are encouraged to thoroughly review and inspect the home and complete their own due diligence before moving forward.
Homes are sold as-is, which gives buyers the flexibility to make improvements on their own timeline and according to their preferences.
Inspections are at the buyer’s expense and discretion.
Taxes, Insurance & Legal FAQ
1. Who pays property taxes?
Tax handling depends on the specific agreement for each home. If taxes are included in the monthly payment, the property page will state that clearly.
2. What about insurance?
Hazard insurance on the property is required. The structure of insurance coverage is explained before signing.
3. Is owner financing legal?
Yes. Owner financing and contracts for deed are legal real estate transactions and are widely used as an alternative to traditional bank financing.
Risk & Default FAQ
1. What happens if I miss a payment?
Payments are due on the first of each month. Late or missed payments may result in late fees. Continued nonpayment may lead to default under the agreement and potential loss of the property, as outlined in the contract.
Late fees and default timelines are outlined in the agreement signed at purchase.
2. What if I want to move out before paying off the home?
Buyers who wish to exit early may do so according to the terms of the agreement. Options may include selling or refinancing the property. Specific terms are explained before signing.
Other Questions FAQ
1. What markets do you serve?
Low Down Homes Now offers owner-financed homes in multiple markets. Available homes are listed on our website and updated regularly.
2. What if the home I want is no longer available?
Inventory changes frequently. Buyers are encouraged to join the buyer list or check the site regularly for new listings.
Still Have Questions?
For the fastest response, complete the Get Started form with your target market, down payment, and monthly budget.
