Real estate transactions in the Mountain State can sometimes occur outside of traditional lending institutions. A seller may provide direct funding to the buyer, allowing them to purchase property without relying on a bank or mortgage company. This arrangement often involves an agreed-upon interest rate and repayment schedule, documented in a promissory note and mortgage or deed of trust. For example, a property owner seeking a quicker sale might offer this option to a prospective buyer who has difficulty qualifying for a conventional loan.
This alternative method can offer benefits to both parties. Buyers gain access to homeownership opportunities that might otherwise be unavailable due to credit issues, lack of down payment, or other challenges. Sellers may realize a faster sale, potentially at a higher price than they would receive through a traditional sale. Historically, such arrangements have been more common in areas where access to traditional financing is limited or during periods of economic instability. They can also be used when dealing with unique properties that lenders are hesitant to finance.
