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Frequently Asked Questions
FAQ
Answers to common questions about our owner-finance homes, terms, and the process. If you don’t see your question here, feel free to contact us anytime.
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 credit check is required. Approval is based on your ability to make the monthly payment and provide the required down payment. Past credit issues, self-employment, or limited credit history do not automatically disqualify you.
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 works directly with owner-financed properties and is not acting as a traditional real estate agent. Homes are offered through owner-financing agreements rather than bank-financed sales.
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 or title company closing costs. Any costs related to closing are handled as part of the owner-finance transaction, and buyers are not required to obtain bank financing. Once the agreement is signed and the down payment is received, move-in can typically occur shortly thereafter.
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 typically include principal, interest, and property taxes. Insurance is handled as outlined in the agreement.
Repairs & Condition FAQ
1. Are the homes move-in ready?
Some homes are move-in ready, while others may require repairs or updates. All properties are sold as-is, and any known condition details are disclosed before purchase.
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.
Taxes, Insurance & Legal FAQ
1. Who pays property taxes?
Property taxes are handled as outlined in the agreement and are typically included in the monthly payment.
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
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?
We're here to help. Reach out anytime for more information.
