Owner Financing Idea

Owner Financing Idea

Do sellers that offer owner financing ever use real estate agents?

Does anyone know if you can still qualify for the First Time Buyer 8,000 dollars if you are using owner financing? I feel like you can but I'm not positive.

From most of the Owner Financing ads I have come across the seller's usually ask for a down payment for assurance that you will be committed to the deal. Now I have a few scenarios to being able to pay for this down payment with none of my own money since I am a first time buyer.

Scenario 1- Owner uses a Real Estate Agent
I will offer to buy the house for a certain amount under FMV with Owner Financing. If the owner is using a real estate agent I will tell the agent that because I am not going to use my own real estate agent he will be getting 6% commission instead of 3%. Therefore, I would then ask that the agent give me back 1 or 1.5% of his commission to either pay the first few months payments or pay part of the down payment. This is still a good deal for the agent because they still get 4.5% to 5% commission instead of 3%. Now, let’s say that as a first time buyer I qualified for the $8000 from the government. I would offer this money to the seller as part of all of my down payment depending on the negotiations. Assuming I can get an agreement on this deal it should be a win for everyone involved. The owner gets to sell the house, the real estate agent gets more commission and I use none of my own money. Seeing as I bought the house under market value I can beginning looking for potential buyers because I can either rent out the house to tenants or I can try to find a buyer with the allotted amount of time that the agent’s commission paid for in my monthly payment to the owner.

Scenario 2- Owner doesn’t use a Real Estate Agent
For the most part every aspect is the same except that I cannot use 1.5% of the agent’s commission to pay the first month or two of payments. Therefore, I would then ask the seller that payment not begin for 1 month. Giving me 30 days to find tenants or find a buyer.

Does anyone know if this is possible?

Luke Ward


Success and Nothing Less!


The only problem here is, that in order to you use the 1st time buyer credit, it must be an owner occupied property. So you have to live in the property which you use the credit towards. I believe this is the case, if I am wrong someone please correct me.

Good job thinking creatively tho, that is thinking outside the box for sure.

Good luck! Smiling

Hmm.. Well I guess if that

Hmm.. Well I guess if that were the case and I did need to live in the house to get the tax credit then I could always live there and rent out the other rooms to tenants. That way I live for free and even possibly make a little monthly income.


Success and Nothing Less!

$8000 tax credit

is a licensed lender program,underwriting guidelines to qualify.
Owner financing is a note to the terms agreeable to the buyer obligation to pay the owner. Search these forums on "Wrap around" and "Subject to". Owners can arrange cash to you if it makes them money on the note, either on monthly cash flow or on the agreed purchase amount.


Yes for the 8,000 tax credit and use that for the down payment and yes you have to live in that dwelling in order to benefit that. Good luck !

Warm regards,

Paul T. La Moy


my insurance agent also informed me that you get a break with buying multi-family dwellings; e.g. 4 plex, 4 incomes, 1 insurance premium
verses 4 incomes,4 properties,4 premiums.
best of luck to you.


crosstown looker

Great to know

Richard, that is great to know. Thanks



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Make would make sense

it's all under one roof.


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