Creative Financing

Another advantage that the prospective buyer should toss into the negotiating picture is the possibility of creative financing. For example, the seller may be willing to hold a second mortgage; this can reduce or eliminate the need for a down payment. For more information and ideas about seller financing options, check out the "Seller Financing Options" article.

The seller also may more readily agree to take responsibility for closing costs. For a typical $100,000 purchase, closing costs can range from $900 to $5,000, depending on the financing and purchase situation. For more details and ideas, please see the "No Closing Cost Options" article.

The FSBO purchase transaction may also provide the buyer with an opportunity to exercise an assumption option, which has many little-known benefits for the buyer, including savings of thousands of dollars in interest payments and possible reduced down payments. For more details about the benefits and advantages of mortgage loan assumptions, see the "Buying Property With Loan Assumptions" article.

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