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 Fort Myers and the surrounding area…
You’re probably familiar with bank financing, where you secure a mortgage loan from a bank or another lender to buy a house. In this process, the bank pays the seller the full purchase amount, and you, as the buyer, repay the bank over a set period, often spanning several years, until you’ve completely paid off the loan and become the sole owner of the house.
But it’s not the only way to buy a house, there’s also seller financing (also called “owner financing”). That’s when the sellers agrees to not to take the full purchase price for the house right away but instead takes the money over a period of years. In effect, they are acting like a bank, accepting partial payment over time until you’ve paid off what you owe.
So you might be wondering, “Why owner financing makes sense in Fort Myers?”
Good question!
Here’s our answer…
There are 3 main reasons why owner financing makes sense in Fort Myers:
3 Reasons Why Owner Financing Makes Sense In Fort Myers
Owner financing offers a swifter route to homeownership primarily due to its flexibility. In cases where buyers fall short of the required credit score for a conventional mortgage or struggle to meet the strict payment criteria set by banks, seller financing presents a feasible option. Sellers often don’t impose stringent credit history requirements or rigid payment schedules, allowing buyers to accelerate the home buying process compared to traditional bank loans.
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.
Summary
Owner financing is a great tool for both sellers and buyers; if you’re thinking about buying a house in Fort Myers, owner financing can give you the means to buy your next house.