I'm thinking about buying a house with owner finance. Any disadvatages of that?

1. Make sure there is no balloon mortgage which means you'll have to refi after so many years.

2. Get a fixed rate with an open end mortgage which means you can pay down the mortgage anytime.

3. Get a title search to make sure there are no leins against

the property.

Yes, allot. You don't know the financial standings of the home owners. they should be going into bankruptcy and foreclosure and then any money you put down would be lost. Of coarse you could take them to court but you can't get blood from a turnip.

Also it's likely they will want a bit more interest then the bank, they won't carry the contract out 20- 30 years, property taxes and escrow need to addressed, the property needs to be in you name to get the homeowners tax break.

Also you don't know if they have any mortgages or liens on the property.

You can do this but I suggest that you get a good lawyer involved and do a complete deed and abstract search on the property, post a notice for and liens or mortgages on this property.

But lastly i would talk to a banker, get a independent appraisal done see what the bank would want for payments the term of the loan and what property taxes are. I would also have a independent home inspection done of the house to ensure no termites, and good working plumbing, roof and foundation ETC.

So these are the major things I am sure I have forgot something but these are the important ones.

Good Luck!

There are plenty of ADVANTAGES in owner financing. It is the BEST loan you can get.