Seller Financing - VA Attorney/Title Co Recommendation

[Tanya S.]

Hey BPers!

I am currently in negotiation with a seller in Arlington on a seller financing deal, and it's looking likely we can come to an agreement that works for us both.

Can anyone in the Northern Virginia (NoVA) area who has successfully done a seller financing deal recommend the attorney and/or title company they used? Happy to share my experience with the community if/when the deal gets done. 

[Tanya S.]

Under contract! And the process is not as complicated as one might think... so far. We used the standard VA sales contract, plus a standard seller financing addendum (two pages). Yes, VA has a standard form for this also. Seller's attorney is preparing the promissory note and loan documents (very similar to what Fannie requires). I'm using the second attorney I spoke to for settlement and he was able to review the standard sales contract and addendum before I signed. Not that complicated.

The standard VA seller financing addendum gives you a couple options you can negotiate with the seller. I chose no prepayment penalty of the loan, and the ability to pay taxes and insurance on my own and just provide proof of timely payment to the seller within 7 days of payment.

The only hurdles left are home inspection and seller's review of my finances. Financing agreed to was a bit over $500k, 30 yr amortized loan at 3.5%, 5 year balloon, with a 20% down payment. House comes with tenants, which was another great bonus, since I'll be overseas and won't be able to live in it for the next 3 years at least. When I'm back, I can just move in and refi as an owner occupant. In the meantime, I avoid the investor bank rates as well as all of the origination fees for the loan. I'm liking this seller financing business :)