owner financing-does it show up on your credit report

if you ask that they report it then it WILL show up but in most or rather a lot of owner finance cases it does not.

Hello Grady 29,

As Anita indicated above the owner financing usually does not show up on your credit report. This can be a good thing if you get traditional fianncing on future properties because there are limitations on how many mortages you may have if the mortages are sold on the secondary markets of Fannie Mae or Freddie Mac. Thus, selling financing or dealing with small local banks can help achieve your goals of owning several properties. Good luck on all your deals. Believe and Achieve! Indiana-Joe

Just to add what the others had said,Owner financing and seller financing are the same meaning if know one knew. OWC is one of the best way to sell a home in any market. For more info about OWC go to www.JSNoteFundingGroup.com or pm me for futher info

"LETS GET CRAZY RICH"

Great comments on this subject. Even though a private real estate note is typically not reported to the 3 major credit reporting agencies, if needed you can ask that the home owner do report it. This works great if you are in the proccess of building your credit score back up.

If I do a FSBO deal, and I am making the payments, how will the owner report it to the credit reporting agencies.

Darius

How do i,get my own residence to live in.Would like to move my family into a house,using a lease option. But dont know how to start.Looking for any info that could help me. Thank You.

When you do seller financing, the seller is basically the bank that lent you the money on the property. The only way you can have it reported is to work with a credit company that can report it to the bureau's. But generally it will not be reported.

Most of the time you don't want a lot of properties on your credit report. You can basically max out your credit. So the less you have on there the better.

Mike
Advisor

The main problem I see with this is that if you are late making a payment,you could loose them home much faster than if you went through a bank,they seem to be more forgiving.

When you are doing a loan and you don't have enough credit the lender needs to approve your loan. You can add what is called a non-traditional line of credit. This can be anything from a phone bill, utility bill, but can also be a seller financing mortgage payment.

So if you have a buyer that purchased your home on a note, then you can have them put this line on their credit when they are qualifying for the loan to purchase your property from you.

Great way to get them qualified.

Mikessler
Keep Moving Forward!!

I was a loan officer for 7 yrs. I've seen to positive and negative impacts on credit reports. If I were doing a seller financing deal, I would not have them report it UNLESS I was trying to build my credit and wanted my payment history tracked. Before making that decision you need to do a little more research into your credit history and see where you are at and would this move have a positive impact or a negative impact. The nice thing is that you have the option.

I will change the direction. If you are selling houses using seller financing (which, by the way is a great income opportunity) I suggest that you pull the borrowers credit, get a full 1003 financing application, get a down payment and treat the loan as a traditional loan.

Doing this will help to ensure that you get a good loan created and IF you needed to or want to you can sell the loan to another investor. The more information you have the better your pricing and the easier the transaction.

Since I'm re-establishing my credit, i wanted to buy a house using a seller finance on a property is this a sound idea?

Thanks for watching out for our credit. Great warning/tip.

This is commenting on an older posting...

but I just wanted to say thanks. I never knew that you could ask the home owner to report to the credit bureaus. Great insight!

Seller financing...now that's something I'll have to study. I'd assume that in todays market, it can be a great tool. I'll find out.

I am an owner Finance how do I go about reporting payments to creit agencies

It will show up. Specially when you ask for a print out report.

Seller Financing will usually show up on credit IF (yes, IF) the person doing the seller financing submits your information to the credit bureaus. Most people that do seller financing do not pull credit, gather social security numbers or know how to submit payments to the bureaus.