Why are purchasers willing to pay a premium over bank financing rates for owner financed notes?
A. The reasons for this are many and varied and include: 1.) Its easy. All the buyer needs to say is Yes. Every other aspect of setting-up the loan (other than filling out a standard credit application) is handled for them. 2.) Its simple. The buyer needs only to sign the required documents and is not involved in dealing with multiple banks or their staffs. This makes the acquisition process not only straight forward but less time consuming and less intimidating for many buyers. 3.) Not all purchasers could qualify under current banking rules for second homes or vacation properties. Landmark Land Sales takes a written credit application and performs a credit check to verify the application. Specific loan parameters are designed based on credit quality, with loan reserves required for weaker credits. Credit scores average from 550 to 700, with average credits ranging from B+ to A- when scored on a residential mortgage loan matrix. Remember, as a general rule a higher yielding note has h
