If you’re thinking about buying a home, you may have heard of the terms “seller financing” or “owner financing” and you’re not sure what they mean. In this blog post we’ll answer what exactly is owner financing and how you can use it in Milwaukee as another option to buy your next home…
Getting a new home is an exciting new step in life for many people, especially if you move up from a rental or into a larger home to accommodate your growing family. This opens a bunch of new possibilities and it’s especially exciting when you are checking out every house there is and imagining yourself living in it. But there is one question that everyone must ask themselves, and that is: How can I pay for this?
Most people have heard of bank financing, where you get a mortgage loan from a bank or mortgage lender and you pay it off over time. But there’s also seller financing (also called “owner financing”) that you can get as well. So maybe you’re wondering, “what exactly is owner financing and how you can use it in Milwaukee?”
What Exactly Is Owner Financing And How You Can Use It In Milwaukee?
What Is Owner Financing?
Owner financing is when you skip going to the bank to get a mortgage and instead the owner/seller of the house acts as the bank. In other words, you still pay a monthly payment but instead of making it a mortgage payment to the bank, you pay the lender.
More or less, it works as if you have taken a loan from an individual, but instead of getting a huge amount of money up-front, the owner is letting you stay in the house and you pay them month by month, until you’ll pay off the house and get the full right of ownership.
How Can You Use It?
You can use the owner financing method in order to acquire a house in Milwaukee. When you find a house that you’d like to buy, you have to go to the owner and ask them if they’d agree on owner financing instead of waiting for you to see if you can get bank financing – and risk being denied.
Owner financing is surprisingly common and used in a number of different ways – from first time homeowners with bad credit, to real estate investors who cannot or do not want to use their own credit to acquire an investment property.
Owner financing can be a safe, secure and simple way to purchase your next property without having to deal with the bank and their paperwork. Of course, like with everything else, there are both benefits and drawbacks to this method so be sure that you have researched this opportunity thoroughly.
Another way to potentially get owner financing is to talk to us. We have properties that we sell using owner financing and we’ll be happy to show you how it works. You don’t need great credit to get your next property from us.