Some moving with seller financing

When the circumstances are right, some homebuyers are moving into new homes via seller financing.

The nontraditional homebuying method has gained popularity recently, especially among buyers who might have a checkered credit history, reports the Washington Times. Since lenders have tightened their credit requirements, some buyers are finding it more difficult to qualify for a mortgage. However, if they can find the right arrangement, they might still be able to afford moving into a new home.

In such an agreement, regular payments are made directly to a homeseller, rather than to a lender. Though not a commonly used tactic, some buyers can find appealing deals through seller financing. The Times detailed the story of one couple that was able to purchase a home directly from an elderly couple for a favorable price.

"We were able to save a lot of money for the sellers and for us, since no real estate agents were involved and the closing costs were a lot cheaper," buyer Nina Haeringer told the paper. "We used the same lawyer for the closing, so we felt like both sides were equally represented."

Many credit-strapped buyers are looking for ways to finance their relocation to a new home. Mark Vitner, an economist with Wells Fargo, told Reuters that tightening lender standards may be preventing many from qualifying for a mortgage.
 

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