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. When investing in real estate, you have several methods or strategies available… you can rent, rent-to-own, lease purchase, owner finance, wholesale, fix and flip, and many other options as well! To help you make your decision a little easier, we’ll outline 4 owner financing advantages for buyers in Dallas Fort Worth, TX 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. Since this isn’t something that people do very often, we don’t always know how to locate local private lenders to get the cash we need, when we need it.
If you’re wondering whether buying a house through owner financing is right for you, here are 4 owner financing advantages for buyers in Dallas Fort Worth, TX…
Owner Financing Advantages For Buyers In Dallas Fort Worth, TX
#1. You can buy a house even if the bank says no
You can get a traditional bank loan from a mortgage loan lender like a bank or mortgage company. But 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. Private lenders for bad credit in Fort Worth TX might be able to get you the money you need even when the banks say no. This allows you to get into a house sooner instead of trying to fix your credit first.
#2. There’s no credit impact
Are you tired of bad credit impacting your buying power? Does bad credit hold you back? Having credit issues is bad enough but when you need to borrow money, having bad credit becomes even more of a problem. Financial institutions may not lend to you because of your credit, even though you need the money. Lenders typically avoid lending to people with bad payment history because they see them as high risk. However, 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.
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! Not all home lending financial institutions are created equal. Every one of them has different loan qualifying criteria to determine if they will make a loan to a borrower, how much they will loan, and what the interest rate will be. They are all a bit different. 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
The terms of the deal are one of the most important yet most overlooked parts of the deal. Different lenders will have different requirements. The terms might include things like how much down payment you want if there’s an early repayment penalty or a late payment penalty, and most important – how much interest you charge. 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 Dallas Fort Worth, TX make it a very compelling way to buy a house.
If you want to find the perfect private lender for a buyer in Fort Worth, you can carry out a detailed search online or even ask around locally. It might surprise you to discover that many private lenders are difficult to find, often because they are not widely publicized or promoted (since they rarely have the advertising budget of a bank to market their lending services!)
Did you know you can skip all the negotiations and complexity and just buy directly from us? (We may even have some owner financing options available). We always have new houses coming in all the time so make sure you check in regularly to see what’s available.
Click here now and fill out the form, or call our office at (817) 550-5069 Opt# 9.
Why Rent When You Can Own? Own A Texas Home Today!
Want to get a personal loan from a private lender fast? We at TMC Property Solutions can help you by connecting you with private lenders in Dallas Fort Worth. Simply fill out the form or give us a call at (817) 550-5069 Opt# 9.
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