What Does “Owner/Seller Will Carry” Mean?

“Seller/Owner Will Carry” or “Seller/Owner Financing” is when the owner of the property is financing the loan for the buyer to purchase the property. This means the current owner of the home owes no money on the property and becomes the lender for the home’s buyer. Owner Will Carry (OWC) loans are an attractive option for those who fail to meet the guidelines for obtaining a loan. By the seller becoming the lender, they are bypassing some of the benchmarks set up by standard loan practices, like credit, that can prohibit some from buying a home. But both buyers and sellers should beware: the rigorous mortgage application process exists for a reason, and sellers should be wary of those who cannot meet those benchmarks. On the buyer side, remember that a seller-financed loan will involve a much higher down payment (25%), and is subject to steeper interest rates (8-12%). This can be a good option for first-time home buyers working with a seller they trust to help them get into their first home. OWC also works for those who own multiple properties and whose finances are already tied up.

Read: How Do I Buy a “Cash Only” Property?

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