Owner Financing 

What to have ready

• Proof of income
• Basic credit report showing no foreclosures or evictions
• Earnest money deposit as specified on listing
• Email address
• Mailing address
• Phone Number

The Process & What to Expect

Owner financing is a great option for many. Here at the Alaskan Wildwood Ranch®, buyers have the ability to own a property in Alaska without the hassle of the banks. We will get into how our owner financing works and what to expect.

• We review your proof of income to establish you make enough to afford the monthly payment in addition to your living expenses.
• Along with your proof of income, we will review the online owner finance application you submit.
• You will need to submit a basic credit report with the owner finance application.
• Your credit report, proof of income and owner finance application are collected together to be submitted with the purchase and sale agreement.
• The purchase and sale agreement is also known as the “offer” paperwork. We use the standard Alaska MLS forms for this. Once all of these are collected and reviewed, both parties will sign the accepted version that both agree on.
• After the purchase and sale agreement is signed accepted by both parties, the property is locked into a “pending” status.
• Along with those documents and purchase and sale agreement, you will be required to deposit earnest money. This essentially acts like a security deposit and is held in the brokerage’s trust account during the pending status. The title company is also notified of the earnest money deposit and accounts for it. Your earnest money deposit will be credited to your down payment and total closing amount. (Example: Let’s say your down payment is $2,500 and the required earnest money deposit for the property you selected is $500. After you deposit your earnest money to the brokerage, you would have a remaining amount of $2,000 due on your down payment at closing.)

Now that we have finished the beginning process (the application, the credit report, the proof of income, the purchase and sale agreement, and the earnest money) we move into the title/escrow and the closing/recording part of the transaction.

• When you purchase a property in the Alaskan Wildwood Ranch®, you will be provided a title report and title insurance. The title report will show the history of the title, any associated documents, and that it is free and clear to sell.
• After that, you will be provided a statement of accounting from the title company showing the breakdown of your closing costs that are associated with the transaction.
• Once you have reviewed the statement, the title company will prepare the closing documents which would include your warranty deed and associated closing documents. If you are local to the area, the title company will have you sign the documents at their office location. If you are out of state, they will email you the closing documents along with a shipping label.
• Local? You will be scheduled to go to the title company’s office and sign your closing documents there. You will want to expect to bring with you a cashiers check for the exact amount of your remaining down payment and closing costs. That will be due at the time of closing.
• Out of state? The title company will email you your closing documents along with a shipping label. You will need to print them out, then sign them with a notary, then mail them back using the provided shipping label. The title company will provide you with wiring instructions to send your remaining down payment and closing costs due. The title company can explain this further for you.

Once buyer and seller documents are received, the transaction will record. You will then be the new property owner!

• Your first payment will be due 30 days from closing. You will make payments to a third party escrow collection company (Such as; First National Bank of Alaska or First Mortgage in Anchorage, Alaska).
• The third party escrow collection company takes your payments, does the accounting and then disburses the monies and statements accordingly. You can mail your payments to them or setup automatic ACH payments. You will want to inquire with the escrow company for more details.
• During the owner financing term, the property is in your name. You are repsonsible for the annual property taxes, the upkeep and care of the property, and to follow all agreements within the purchase and sale agreement and the deed of trust. You will need to also update your contact information with the seller annually.
• There are no prepayment penalties! What does this mean?With no prepayment penalties, you can make larger payments each month or pay off your loan at anytime without any penalties from the seller. Great option for refinancing after you have built your dream home or cabin! In order for this option to work, you must be current on your account with nothing past due including fees. Any amount over the minimum monthly due, will be applied to the principal balance. 

You are welcome to contact us to go over the details further or assist you with the application.