Owner financed homes have long been a way for some home buyers to look at owning home. We personally helped a client sell their home on a option and the buyer closed the home in 4 years. They own it today and our client also was very happy with the results.
The key to buying any home especially owner financed property, is to make sure you set it up correctly. I have always used a attorney and title company to handle the paperwork and make sure title is clouded with the purchase.
The down payment is the key to success on these kind of deals. There are a lot of people that have the money, just not the credit. Personally I like to see at least a 10% down payment which would be credited to the purchase price when the buyer refinances or sells the property.
The payments are always set up through a disinterested third party to keep all the records and verify the buyer has made the payments. The service is also a great credit reference when they go to refinance the property.
The monthly payment would be the going lease rates in the area of the home. Easy to find on any property website.
The home also needs to be updated and inspected to ensure the buyers will not have any issues. The sale should be treated like any other home purchase. I always recommend a warranty for the first year that can be renewed buy the buyer every year. Those policies usually run around $400-$525 a year.
Buying a home on any land contract or option needs to be set up properly and sold by a professional.
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Thank you