Makena Wailea Properties Blog

If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

What is a Purchase Money Mortgage?
* Technically any mortgage on real property executed to secure the purchase money from the buyer is
   considered to be a Purchase Money Mortgage
* Commonly referred to as a mortgage that is taken back by a seller from the buyer in lieu of purchase
   money
* Can be either a single-financed debt, or it can be used to fill a gap between the buyers down payment
   and the new first mortgage

Advantages for the seller
* In a financially stressed market, seller financing may be more attractive to a buyer, resulting in a
   quicker sale   
* The sale usually closes quicker
* You may be able to defer income tax liability
* Interest rates provide a great yearly return

Advantages for the buyer
* You may be able to buy property you can not qualify for if relying
   on conventional financing
* Closing costs are usually lower
* The down payment required is usually smaller
* You may not be required to purchase mortgage insurance
* Flexible payment terms may be available
* Unlike an Agreement of Sale, you obtain legal title to the property

If you don't currently qualify for a conventional mortgage, you might consider a Purchase Money Mortgage. It can help a seller realize a high rate of return, and make it easier for a buyer to obtain financing. As with all contracts, it is strongly recommended you consult with an attorney familiar with real estate law.

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If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

What is an Agreement of Sale?
* An agreement of sale is a contract of sale between the seller (vendor) and buyer (vendee) for the
   purchase of real property.
* The purchase price may be paid in installments by either: 
        Principal and interest or
        Interest only, with the balance due at maturity
* The seller retains legal title to the property
* The buyer is given possession and equitable title to the property
* The seller is obligated to deliver good legal title when the buyer
   completes the required payments

Seller Advantages
* Seller retains legal title to the property until the buyer is able to
   perform
* Can provide a higher rate of return on interest rather than placing
   your money in an interest bearing account
* Installment sale enables the seller to defer payment of the large
   capital gains tax

Buyer Advantages
* If the buyer is unable to qualify for an institutional mortgage this is an alternative means of financing
* Benefits:
        Reasonable financial terms
        Buyer could benefit from property value appreciation

If you don't currently qualify for a conventional mortgage, you might consider an Agreement of Sale. As with all contracts, it is strongly recommended you consult with an attorney familiar with real estate law.

**********

If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Makena, Wailea or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home, condo or land in the South Maui areas of Wailea, Makena or Kihei, or would just like to learn more about owning real estate in Hawaii, give us a call. Providing years of service with Aloha...we are your South Maui experts!

Mike Eddy     REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  REALTOR®(S), B.A.
Mike    (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
info@SoldOnParadise.com
www.SoldOnParadise.com

If you are considering buying or selling a home or condominium in the South Maui areas of Kihei, Wailea or Makena, or would just like to learn more about owning real estate in Hawaii, give us a call. We are your South Maui experts! Call now for a free consultation!

Mike Eddy    REALTOR®(S), ABR®, e-PRO
Sheryl Eddy  B.A., REALTOR® (S)
Mike   (808) 268-2219 Cell
Sheryl (808) 268-2220 Cell
www.SoldOnParadise.com