Process overview

How does buying one of our owner-financed homes work?

Step 1

Tour the Property

Find a home that interests you? Our team can set up a tour so you can see it for yourself. We’ll be available to give you details of the property and answer all your questions.

Submit Purchase Application

If you’re ready to move forward with buying the property after your tour, you’ll submit an application so we can draft up the contract.

Review and Sign Contract

The contract outlines your commitment for buying your home, including purchase price, payment terms, and more. Please read it carefully. Nothing is finalized until the contract has been fully signed by all parties. Once signed, we will send the contract to the title company to begin processing. Two important details of the contract include:

Step 2

Qualify for the Loan

To comply with government regulations, we use a Registered Mortgage Loan Originator (RMLO). The RMLO verifies your ability to pay the mortgage and shares mandatory loan disclosures with you. The loan qualification involves many factors and is not a credit-based decision. Visit Texas Pride Lending to learn more.

Sign Loan Disclosures

The loan disclosure gives you information on all costs related to your loan, projected monthly mortgage payments, and estimated funds needed for closing. Please review this carefully and consult with the RMLO if you have any questions. Once you sign the loan disclosures, we can close in as little as seven days.

Secure Homeowners Insurance

To protect your investment, we require you to maintain active insurance for the property. To help you find your best option, we’ll share our list of Preferred Vendors who specialize in owner-financed buyers. One year of prepaid homeowners insurance is paid at closing. A prorated amount for the following year’s homeowners insurance policy is also included in your monthly payment. Once the cost of your insurance is finalized, we’ll finalize your loan.

Step 3

Sign Closing Disclosure

The closing disclosure provides the same information as the Loan Estimate but in final form. It contains the locked-in costs of your loan and the specific amount you’ll pay at closing. Once you sign your closing disclosure, we can close in as little as three days.

Close at Title Company

We work with a title company that is a neutral third party to help ensure a successful closing and transfer of ownership. On the day of closing, you’ll send the funds needed to close to the title company and sign all needed documents to complete your transaction. CONGRATULATIONS, THE HOUSE IS NOW YOURS!

All done!


We use August REI, a third-party loan servicing company, to manage your loan, including collecting payments and delivering monthly and annual statements. They will be in touch with you after closing to get you all setup and will be your main point of contact for your loan moving forward.

What does owner financing mean exactly?