Make Home Ownership Possible with Owner Financing.
Create stability and escape the rent trap.
Why Should You Look into Owner Financing as a Buyer?
Make Home Ownership Possible when it might not otherwise be possible
Escape the Rent Trap
Create Stability for Family
Entrepreneurs with cash and income can leverage owner financing as an alternative route to homeownership.
Help to Improve Credit Score
Put on path improve credit
Put on path for obtaining bank financing
Note for Entrepreneurs: You have taken the risk many won’t take, and built a successful business. You probably employ many others, giving them a great life. However, as the owner, you don’t have the same W-2 income as your employees. You may have great income, and claim a lot of allowable deductions reducing your tax liability. However, without the strong W-2 income showing on your tax statements, qualifying for a traditional mortgage might prove to be quite challenging. You should be rewarded, not punished for building a successful business! Buying with owner financing bypasses the stringent federal home loan guidelines, and allows you to own the executive home you deserve.
Testimonials
Client Experiences
Abigail Beaver
Real Estate Agent
"As a Real Estate Agent and recent first time homebuyer, I could not recommend Gaby Lockhart enough!! From the start I had no question go unanswered. The consistent and honest communication were very much appreciated. I recommend her to everyone, as I first hand witnessed the lengths she goes for her clients."
Lauren Scheidegger
Home Owner
"Gaby Lockhart with American Mortgage was amazing to work with! She made the mortgage process so easy from recommending other professionals in the process to working on a tight schedule. She is a true professional; fantastic communicator, skillful at crunching the numbers and genuinely cares that her clients close on their perfect home."
Bryce Moore
Home Owner
"Mrs.Gabby was very professional , constantly pushing to get everything finished so we could close in a quick time I really appreciate her help I couldn’t have done it without her!!"
Is Owner Financing Right For You?
Homeownership Possibility: For buyers who might not qualify for traditional mortgages, owner financing provides a viable path to homeownership, making the dream of owning a home a reality.
Escape the Rent Trap: Buyers can break free from the cycle of renting, gaining a tangible asset and building equity through owner financing.
Stability for Family: Owner financing offers stability, allowing families to settle into a home and community with a sense of permanence.
Option for Entrepreneurs: Entrepreneurs with cash and income but lower credit scores can leverage owner financing as an alternative route to homeownership.
Credit Improvement: By entering into an owner financing agreement, buyers have the opportunity to improve their credit scores, paving the way for potential bank financing in the future.
Complying With The Law.
Use Professionals
REALTOR®
Title Company and/or Attorney
Licensed Residential Mortgage Loan Originator (RMLO)
Loan Servicing Company
Buyer Transfer Fees
Transfer Title (Ownership) - No Contract for Deed
What is a QM Loan and Why Care?
QM = Qualified Mortgage
A QM Loan is a long-term loan for a home that has met all the consumer protection requirements of the Dodd-Frank Act. This type of mortgage is the underwriting standard of the mortgage industry.
Dodd Frank – Ability to Repay from 2015
Under the “Ability-to-Repay” Rule, all new mortgages must comply with basic requirements that protect consumers from taking on loans they don’t have the ability to repay.
Financial information has to be supplied and verified
Lenders must look at buyer’s financial information
Borrowers must have sufficient assets and income to repay the loan
Lenders must evaluate and conclude that the borrower has the ability to repay
No balloons on Owner Occupied Loans – However Interest Rate may adjust after 60 months.
Requirements for Qualified Mortgage
Certain risk Loan Features are not permitted
Terms exceeding 30 years
Interest Only Payments
Negative Amortization where Principal Amount Increases
A limit on how much of your income can go towards your debt
No excess upfront points and fees
Certain legal protections for lenders
How an RMLO Protects You
The RMLO’s Job is to:
Prepare disclosures
Ensure the timeframes are met for documents
Correctly categorize the loan as High-Cost or Higher-Cost as this impacts the disclosures and requirements
TILA section 129C(a)(1); 15 U.S.C.
No creditor may make a residential mortgage loan unless the creditor makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan, according to its terms, and all applicable taxes, insurance (including mortgage guarantee insurance) and assessments.
Ensuring a Good Note
Meet Qualified Mortgage Requirements
Get a Home Inspection
Make a Good Down Payment
Good Loan-to-Value Ratio
Realistic PITI (Principal, Interest, Taxes and Insurance)
Escrow the Taxes and Insurance Use a Loan Servicing Company
Start Building Your Equity Now!
Owner financing could be your key to unlock the potential of home ownership to you. Create the family stability and start building your own equity even if you’ve previously been turned down by the bank.
This legally sound arrangement opens up a world of possibility and serves as an excellent funding source if you have the down payment, but maybe you don’t “check all the boxes” of the traditional mortgage lender. Contrary to popular belief, owner financing is not a new concept; instead, it offers a time-tested approach to real estate transactions.
Gaby Lockhart
Branch Manager
NMLS: 994468
940-704-7065
Frequently Asked Questions
What is Owner Financing?
Proven, non-qualifying seller financing transactions which have been utilized for more than 100 years as effective sales tools in commercial, raw land and residential real estate transactions. Under owner financing an existing seller’s loan(s) (Prior Note(s)) are not assumed by the buyer, but a seller financed loan is stacked on the Prior Note(s). The Seller remains fully obligated for payments under the Prior Note(s) and no relationship is established between the buyer and seller lenders. The Buyer’s obligations are limited only to the terms of the owner financing, which is payable to the Seller.
Is transfer of ownership in violation of the "Due on Sale Clause" in a residential mortgage illegal?
No. Violation of a public law is illegal, i.e. traffic tickets, punishable by fines, etc. Violation of a “due on sale clause” is not illegal. A real estate mortgage is a lender contract under civil law. Texas civil law provides non-judicial foreclosure as the primary lender remedy for breach of a mortgage contract, in the form of payment default.
