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 New York 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 New York, New York…
4 Owner Financing Advantages For Buyers In New York
#1. You can buy a house even if the bank says no
Before a bank gives you a mortgage, they’ll check your credit. If your credit is pristine, you may get the mortgage; if your credit is anything less than pristine, you probably won’t get a mortgage. But with owner financing, your credit may not come into play so you may be able to get owner financing even if the bank wouldn’t give you a loan. This allows you to get into a house sooner instead of trying to fix your credit first.
#2. There’s no credit impact
You don’t need to have bad credit to get owner financing. There are many times when people want to buy a house but just don’t want to have the negative impact to their credit scores. Perhaps they need to make another purchase, or maybe they are investors who want to buy several houses without impacting their credit; whatever the case may be, owner financing allows you to get into a house while still keeping “room” in your credit for anything else.
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#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 New York, New York make it a very compelling way to buy a house.