What is a holding mortgage?

A holding mortgage is a type of non-conforming loan that involves owner financing. Under a holding mortgage agreement, the homeowner acts as a lender to the home buyer, offering them a loan to finance their purchase. The buyer makes monthly payments to the seller, who retains the property title until the loan has been paid in full.

What is a holding mortgage agreement?

Under a holding mortgage agreement, the homeowner acts as a lender to the home buyer, offering them a loan to finance their purchase. The buyer makes monthly payments to the seller, who retains the property title until the loan has been paid in full. A holding mortgage carries with it several features worth noting:

What are the benefits of a holding mortgage?

For buyers, a holding mortgage offers several advantages. Firstly, it provides an alternative option for those who may not qualify for traditional financing due to a less-than-perfect credit score or limited down payment funds. By securing financing directly from the seller, these buyers can achieve their dream of homeownership.