Owner-Assisted Permanent Financing

New Perspectives for Sellers and Opportunities for Buyers

Overview

With owner-assisted permanent financing, you put the buyer in direct contact with funding sources that will provide permanent financing. This is a direct loan to the buyer to purchase your property. It works the same as normal financing but with this important difference:

These funding sources specialize in sub prime or "difficult" lending. This means that many of your Buyers very likely cannot qualify for the loan they need anywhere else. 

This difference translates into two advantages for you, the Seller: 

1. You control the Buyer.

2. You can insist on a price equal to full appraised value.

The Step By Step Instructions for advertising, handling calls, and interviewing Buyers apply to both owner-carryback and owner-assisted permanent financing. The only difference is in the handling the paperwork. This is because different funders are involved.

Processing Owner-Assisted Permanent Financing

You will gather information from your buyers and submit it, with other documentation, to our Mortgage Loan Correspondent:

Phase I Process & Documentation

The documents are available at the links indicated.

1. Seller signs Consultation Agreement (Word file). Consultant mails it to Graystone.

2. Seller places ads in paper offering owner financing.

3. Seller obtains offers from Buyers on real estate Purchase Agreement form. Purchase Agreement and related documentation may be found at Seller Assist Owner Carryback Documentation. Consultant will provide advice on documentation. If Seller prefers, California Association of Realtor forms may be used.

4. Seller faxes Prequalification Submission (pdf file) for Buyers, 1003 Loan Application (pdf file) on Buyer, and Certification & Authorization (pdf file - allowing credit report and verifications).

5. Seller orders credit report here. Buyer or Seller can pay for this. This is a "tri-merge" scored report, meaning that Beacon rated credit is pulled from the three main credit reporting companies - Experian, Equifax, and Trans Union. The basic Buyer requirements are: Above 500 middle score; 2 years employment history, 1 year rent/own history; debt ratio at 50-55%; any bankruptcy discharged by closing day.

6. Graystone faxes back a denial or preapproval indicating the qualification financing options the Seller may offer to Buyer. Buyer and Seller complete financing details on real estate Purchase Agreement form, with Consultant assistance, and sign it.

7. Seller faxes copy of Purchase Agreement to Graystone and sends original to Title/Escrow company.

Phase II - Completed by Graystone

1. Graystone mails out disclosures for signature by Buyer and requests supporting documentation, completes verifications.

2. Title and appraisal is ordered. Graystone contacts Buyer for appraisal fee, if appraisal has not been ordered.

3. Buyer selects hazard insurance.

4. Money, documents and closing instructions are wired into Title/Escrow. 

5. Title/Escrow arranges for signing of all documents and closing.

This is an outline. Brunner & Associates will be with you every step of the way to help with the details.

How to Download our Adobe (pdf) Forms 

These forms are specific to the owner-assisted permanent financing transaction. Some were created with Adobe Acrobat©. This keeps the forms unchanged no matter what computer views them. In order to view and print out the forms, you will need to get a free-of-charge download of Adobe Acrobat© Reader,  To do this, please click on the appropriate link below.

Once you have downloaded and installed Adobe Acrobat© Reader, just click on the form name. Depending on your web browser you may be asked where to save the file. If this happens, remember where you saved it. All you do is start Adobe Acrobat© Reader, select File, then Open, and then select your downloaded document. 

To download Adobe Acrobat© Reader FREE Click on the appropriate image. 

For Windows 95/98 - 5.5MB File

(This file should start downloading automatically)

For All Other Users (such as Mac, Win 3.1, Linux, OS/2 Warp, etc)


Adobe's Web Site - For Information on Acrobat© Reader

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