1 in 20 Homes Financed by Seller in 4-Month Period

One in every 20 home sales in Ventura County during the first four months of this year involved seller financing.

Sellers provided some of the financing in 127 sales in the county during the period, according to DataQuick Information Systems. That amounts to 5.1% of escrow closings--below a statewide 7% but above 3.9% in Los Angeles County.

DataQuick studied all 6,008 home sales in California during the period in making its report. The research service said seller financing statewide was up slightly from 6% in the same period a year ago but has remained stable between 6% and 7.5% over the past five years.

Donald L. Cohn, DataQuick’s chief executive, noted that selling a home can be easier if the seller is willing to carry a second mortgage. “You’re more likely to get close to your asking price,” he said.

Lending institutions sometimes are more likely to qualify a buyer for a first mortgage if a buyer-provided second mortgage is arranged, he added.

“We also see sellers taking on the whole first mortgage loan. If the circumstances are right, the monthly mortgage payments are a good source of secured income.”

The study showed that seller financing is most common in rural areas and in the second-home market.