Owner financing, also called seller financing, allows a home buyer to purchase a home on credit and make monthly payments to the seller instead of a mortgage company. The arrangement is popular with sellers who use it as an incentive to sell a house that is proving difficult to sell because of the price, neighborhood or condition. Many buyers that are are unable to qualify for standard loans because their credit scores are poor are attracted to owner financing. Writing a letter to prove owner financing is a straightforward task.
Read the contract or promissory note detailing the owner financing arrangement. The agreement should detail all the key points in the financing, including the principal amount, or amount financed, interest rate, schedule of payments and consequences of default.
Make copies of canceled checks for your most recent three payments.
Write the letter. In the first paragraph, write that the letter is serving as official proof of owner financing for your residence. Identify the name of the owner providing the financing, along with her address and telephone number. In the second paragraph list the amount financed, monthly payments and current balance.
Finish the letter by noting that you are providing additional documentation of the owner financing by providing a copy of the official agreement, along with copies of the canceled checks for your most recent payments.