If you’re thinking about buying a house, you’re probably weighing so many options right now – what to buy, where, and how to get financing. To help you make your decision a little easier, we’ll outline 4 owner financing advantages for buyers in Milwaukee, Wisconsin to help you figure out if this the right way for you to purchase your next house.
Buying a house can be expensive, and might be out-of-reach for most people. Thankfully, there are financing options so you can get into a house that you may not be able to afford otherwise.
One of the best known ways to buy is through bank financing, where a bank or other lending company gives you a mortgage loan. They pay the full purchase price to the seller and then you pay the bank back over a number of years.
Another way to get financing is through owner financing. This is when the owner of the house doesn’t require the purchase amount up-front but rather will take regular payments (just like a mortgage) until the house is paid off.
If you’re wondering whether buying a house through owner financing is right for you, here are 4 owner financing advantages for buyers in Milwaukee, Wisconsin…
4 Owner Financing Advantages For Buyers In Milwaukee, Wisconsin
#1. You can buy a house even if the bank says no
When a bank gives you mortgage, they’ll check your credit. If it’s pristine, you may get the mortgage. However, if your credit has just a minor flaw in it, you most likely won’t get it. But with owner financing, your credit may not come into play which means that you may be able to get owner financing even when the bank refuses to do so. This means that you can move into your dream house quicker.
#2. There’s no credit impact
Of course, bad credit is not a requirement for owner financing. A lot of times people want to buy a house but don’t want to have the negative impact to their credit score. The reasons for this are many. Maybe they plan on making another purchase, maybe they are investors who want to buy multiple houses without receiving the negative impact on their purchase. Whatever the reasoning, owner financing allows you to get into a house while still keeping “room” in your credit for anything else.
Did you know that we do owner financing? Click here and fill out the form to learn more and to see our list of available properties.
#3. Little or no down payment
Many buyers discover the difficult truth that banks require a very expensive down payment, of 5%, 10%, even 20% of the purchase price of the house. This can be almost too much money to save up! Fortunately with owner financing, you may be able to structure the deal where you have little or no down payment to make – essentially you pay back 100% of the house in monthly payments.
#4. Flexible terms
When banks create a mortgage loan, they are forced by their head office to follow fairly strict terms. But when you work with a seller then you can create flexible terms so that are suitable to both of you.
Owner financing has many advantages but these 4 owner financing advantages for buyers in Milwaukee, Wisconsin make it a very compelling way to buy a house.