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What is Owner Financing Etc?

Ownerfinancingetc.com is a site produced by the Guerra Days Law Group that focuses on making sure buyers and sellers get the benefits of owner financing, while staying compliant with the regulatory laws. The owner financing contract is prepared by our Houston real estate attorney to ensure that the Sellers and Buyers get what they bargained for and properly address potential issues that may arise. 

How Does Owner Financing Work?

Owner financing is when a buyer of a property is financed by the seller. Instead of acquiring a third party loan to purchase the property, the buyer creates a loan with the seller and makes monthly installments until the loan is paid off.  Typically the requirements to qualify for these types of loans are significantly less difficult since the seller is the decision maker on whether or not the buyer qualifies.

Since this is a higher risk financing option, the seller will usually charge a higher price and higher interest rate.  Although terms are higher, it is an opportunity for a buyer to purchase a home, have tax deductions, and build equity.  

Whether you are a Seller looking to sale a property for top dollar or a buyer looking to purchase a home where traditional financing is not available, owner financing can be beneficial for all parties. Although this type of financing can be beneficial, it can also be problematic if conducted improperly.

Owner Financing Contract Problems?

The list below are some of problems that could arise if documents are not properly prepared:

  • Accounting

  • Misallocation of Payments

  • Erroneous Escrow Accounting

  • Insurance Issues

The above listed issues can be stressful, time consuming, and costly to fix.  As a Seller or a buyer, you want to make sure you can minimize or eliminate the chances of these issues happening on your owner finance contract.

Why Use a Houston Real Estate Attorney?

While the laws changed substantially between 2008-2010, the Guerra Days Law Group has been at the forefront of owner financing litigation.  This experience has given us the insight on what the courts view as lawful and favorable while conducting owner finance transactions.

With our litigation experience, we have put together a network of real estate professionals to ensure you are conducting a owner financing contract with the least amount of liability and risk.  From attorneys, mortgage servicers, title companies, insurance agents, residential mortgage loan originators, and real estate agents, the Guerra Days Law Group has all parts of the transaction covered. When you hire a competent Houston real estate attorney from our office, the owner financing contract is done correctly, and everyone wins!

If you are in the process of conducting an owner financing contract and need assistance or guidance, please “Get Pricing Now” or Contact Us for further information. Correction is much more expensive than prevention.  Make sure you are conducting your owner finance contract right from the start and get in contact with our local Houston real estate attorney today.

Learn About the Benefits of Owner Financing


Due to the limited inventory available, there is a lot of interest on owner financed marketed homes.  This leads to multiple offers, driving the price of the home up.  There is usually a $5k-$15k premium for offering a property owner financing. 
When you market your property owner financing, you act as the bank.  Best part about acting as the bank is you are the one earning the interest. This allows you to supplement your earning from equity by collecting monthly interest payments. 
Selling your property through owner financing allows you have the benefits of a landlord without all the headaches.  Since the property is conveyed in owner finance transactions, you are no longer responsible for maintenance, taxes, or insurance. 


Why pay your landlord’s mortgage when you can pay your own?  Homeownership gives you the opportunity to gain equity through your home appreciating.  With homeownership you can sell your property for a profit when the time is right for you.
Whether you don’t have enough job history, have trouble proving your income because of self-employment, or have less than perfect credit, owner finance gives families and individuals the opportunity of home-ownership. 
The IRS allows you to deduct the interest you pay on your mortgage.  This is usually a significant deduction for families and individuals as this can help reduce your overall yearly tax obligation substantially. There are many tax benefits from Owner Financing in Texas.