Owner Financing Contract Template PDF Details

In an Owner Financing Contract, the seller agrees to finance part or all of the purchase price, rather than the buyer obtaining a traditional mortgage from a bank or other lending institution. This allows the buyer to purchase the property without having to meet the strict credit requirements and regulations associated with traditional mortgages.

The contract will typically outline the terms and conditions of the loan, including the interest rate, the repayment period, and any late fees or penalties. It will also specify the rights and responsibilities of both the buyer and the seller, such as the buyer's obligation to maintain the property and make timely payments, and the seller's right to foreclose on the property in the event of a default.

You can find more info regarding the owner financing contract template by looking through the table our team put together for you.

Form NameOwner Financing Contract Template
Form Length3 pages
Fillable fields0
Avg. time to fill out45 sec
Other namesfinancing mortgage contract, owner financing contract, owner financing contract template, seller financing contract

Form Preview Example

Owner Financing Mortgage Contract

This agreement is entered into on the __________ day of __________________, 20____

between __________________________________________ (hereinafter “Owner”) and

_____________________________________________ (hereinafter “Buyer”) for the sale of the

property located at _____________________________________________________

(hereinafter “property”).

At all times the laws of the state in which the property is located govern this contract. This contract is not a sale contract for the property. A separate sale contract for the property must be entered into and executed according to the laws of the state in which the property is located.

Loan Terms

This contract establishes that Owner shall sell and Buyer shall buy the property and that Owner shall finance the balance of the purchase price for the property for Buyer after Buyer delivers a down payment.

The purchase price of the property is ______________________, as agreed to by the parties to

this contract. This amount was agreed to after an appraisal of the property, which occurred on

_________________________ and was conducted by _________________________________.

Buyer is/is not (circle one) obtaining financing for any portion of the purchase price of the property from a third party, such as a bank. Buyer must notify Owner of the amount of financing obtained from any third party and provide the name and contact information of the third party within 30 days of obtaining such financing.

The down payment amount of _________________ has been agreed to by the parties and is to be

delivered no later than __________________________, 20_____. Failure to provide this down

payment nullifies this contract in its entirety.

The amount that Owner will finance for Buyer for the sale of the property is

_____________________ (hereinafter “Owner finance”). Owner shall carry the promissory note

for the entire mortgage term for the amount identified as Owner finance.

Buyer has submitted a mortgage application to obtain this financing and Owner has approved

Buyer’s finances.

Financing for the mortgage is to last for a period of _________________ and carries an interest

rate of ________________. This interest rate is/is not (circle one) flexible according to the

Page 1 of 3

mortgage rate index chosen by the parties. The parties have chosen ______________________

as the mortgage rate index to govern this contract. Any changes to interest rate can be made solely by the Owner, but must be provided in writing no less than ________ days prior to the

change coming into effect.

Payment for the mortgage is due monthly in the amount of _________________________. This

amount does/does not (circle one) include taxes, insurance, and legal, state, and other fees associated with owning the property. Should this amount include these fees and should these fees change due to changes in rates being set by the governing party, such as the state tax authority, the parties will notify each other of any changes that are brought to their attention within 30 days.

Prepayment of all or a portion of the financing extended to Buyer is allowed and carries no penalties.

This agreement is secured by the home. Buyer’s failure to pay the mortgage payment when due

as described above entitles Owner to initiate foreclosure proceedings as allowed by state against Buyer. Owner has the right to repossess the property after the conclusion of foreclosure proceedings, as outlined and permitted by the laws of the state in which the property is located.

Loan Servicing

Owner will/will not (circle one) hire a loan servicing company to draw up the mortgage documents and handle the processing of payments. The selection of the servicing company is solely at the discretion of the Owner. Any fees charged by the chosen company for servicing the loan will be handled directly by the Owner. Owner reserves the right to hire a servicing company at any time. Notification of the choice of servicing company will be provided to the Owner no later than 30 days before payment should be sent to the servicing company.

Owner may change servicing companies at any time without giving prior notice to Owner. However, Owner must notify Buyer or have the new servicing company notify Buyer of any

changes to choice of loan servicing company at least 30 days prior to the change in mailing address for monthly payment. Any fees incurred due to the Owner’s failure to provide Buyer with notice, either directly or from the service company, and the Buyer’s sending payment to the

incorrect address shall be paid by Owner.

This contract is full in its entirety. Any additions must be made in writing and amended to this contract.

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Entered into this __________ day of ________________________, 20_____.





Notarized or executed according to governing state law this ______________ day of

____________________, 20____.

Page 3 of 3

How to Edit Owner Financing Contract Template Online for Free

The entire process of filling in the mortgage contract form blank is rather uncomplicated. Our team made certain our editor is not hard to navigate and can help fill out just about any form without delay. Have a look at several steps you will need to take:

Step 1: Press the button "Get form here" to open it.

Step 2: Now you are on the document editing page. You can modify and add text to the form, highlight specified content, cross or check certain words, add images, insert a signature on it, erase needless fields, or take them out completely.

Complete the particular parts to fill in the template:

example of gaps in owner finance contract

You have to write down the demanded information in the The purchase price of the property, Buyer isis not circle one, The down payment amount of has, The amount that Owner will finance, and Buyer has submitted a mortgage area.

Filling out owner finance contract part 2

The software will require you to put down particular key info to effortlessly fill in the field Buyer has submitted a mortgage, Financing for the mortgage is to, and Page of.

owner finance contract Buyer has submitted a mortgage, Financing for the mortgage is to, and Page  of fields to insert

The mortgage rate index chosen by the, Payment for the mortgage is due, Prepayment of all or a portion of, and This agreement is secured by the space is where all sides can put their rights and obligations.

Filling out owner finance contract step 4

Fill out the form by checking these sections: Entered into this day of, Buyer, Owner, and Notarized or executed according to.

step 5 to completing owner finance contract

Step 3: If you're done, hit the "Done" button to export your PDF file.

Step 4: Make duplicates of the file - it will help you stay away from future concerns. And fear not - we cannot display or check your details.

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