Driven by capital-gains rules and soaring home appreciation, the appeal is growing for ‘owner- carry’ mortgages.
Seller financing, once used to attract buyers forced out of the market by high interest rates on conventional loans, may be making a comeback thanks to California’s handsomely appreciated market and the ceiling on tax-free home-sale profits.
“Owner-carry loans” or “take-back loans” — in which the seller holds the mortgage for an agreed-upon interest rate and period of time — gained popularity in the late 1970s and early 1980s when rates were in the double digits.