I got an email today from a company called CircleLending. I read up on the website and it sounds like a pretty good idea. Say you want to owner finance a property and you are not sure how to do it. CircleLending will handle all the details for you as if you were financing thru a mortgage lender. They use all the same Fannie Mae forms.
According to the website, the benefits for sellers are:
- Generate a steady income stream.
- Attracting a larger number of buyers. In this market, you need all the buyers you can get.
- Overcoming valuation problems. House not appraising for your asking price but the seller is willing to pay?
Benefits for buyers using CircleLending are:
- Lower closing costs.
- Obtaining a mortgage when you may have not been able to otherwise.
- Supplement other financing. Bank won't approve 100% and you don't have alot of cash for a downpayment?
The costs seem to be relatively inline with normal closing costs. Let them handle the closing, service the loan and handle the escrow account for $2299. I did notice they charge a $9 monthly fee to handle the monthly payment for you. This service also works for mortgage financing between family members.