If you’re thinking about buying a house and you’re exploring your financing options right now, there’s a good chance you’re deciding whether you should go through bank financing or owner financing. There’s already a lot written about bank financing, so this blog post is meant to give you the other side of the coin, to talk about why owner financing makes sense in Milwaukee and the surrounding area…
You most likely know a lot about bank financing. That is when a bank or any other lender gives you a mortgage loan so you can buy a house. The lender will pay the seller the full price of the house, and then you repay the bank in rates during a several year time period until you own the house.
However, that is not the only way to purchase a house. Another option is seller financing, also known as owner financing. That means that the seller agreed on not taking the full purchase price in an instance, but instead takes the money back during several years. In short, they are acting the same way a bank would, accepting partial payments over time until you’ve paid back all your debt.
So you might be wondering, “Why owner financing makes sense in Milwaukee?”
Here’s our answer…
There are 3 main reasons why owner financing makes sense in Milwaukee:
3 Reasons Why Owner Financing Makes Sense In Milwaukee
First off, most of the times it enables buyer to get into a home faster. Owner financing can be rather useful if a buyer has received some sort of damage to their credit score, which means they can’t get the mortgage loan. With seller financing, the owner doesn’t have to require for a clean credit score or high monthly payments, which will allow buyer to purchase a house even when the bank isn’t supporting them.
Second, it provides flexibility to both the buyer and the seller. A bank uses fairly traditional terms: You’ll pay so much money as a down payment, then the rest paid back over time – either as a fixed rate or variable rate mortgage. But a seller and a buyer may find different terms that they agree to that aren’t as rigid. In fact, some agreements can become very creative and flexible for both parties!
Third, it can be a win the seller, too. A seller wants to sell their home, so offering owner financing gives them access to more buyers who might not typically be able to buy. By offering seller financing, they increase the number of potential buyers who would even look at the house. And not all sellers necessarily require all the cash up-front (which why would get through bank financing). Instead, they may prefer the cash flow that owner financing gives them.
Owner financing is a great tool for both sellers and buyers; if you’re thinking about buying a house in Milwaukee, owner financing can give you the means to buy your next house.