Jacqueline, A land contract is an agreement between the seller and the buyer. The terms of the agreement are negotiable. These terms include purchase price, the amount of the down payment, the length of the contract, the payment amount and the interest rate. The seller will still want you to meet requirements to qualify for the land contract. The land contract should outline in full detail, all terms of the agreement and then be recorded. Have a real estate attorney review the contract before you agree to the terms and sign it.
If your credit is less than perfect, buying on a land contract gives you the opportunity, over time, to improve your credit through credit counseling to position yourself to qualify for a mortgage and pay off the land contract.
I hope you find this information helpful.... more
Purchasing real estate with a land contract is buying with seller financing.
Instead of a bank financing the purchase, the seller is carrying the
loan for the buyer.
The financing still involves an application process in which
the buyer provides documents to support the proof that there is
an ability to repay the loan.
Usually the seller is not as critical of low credit scores as a bank might be but does
need proof that the buyer has the ability and intention of
making monthly payments in the purchase of the property.
A down payment is required so that the buyer is committed to completing the transaction.
A typical land contract is for 5 years, which gives the buyer time to rebuild the credit score and be able to secure financing to complete the purchase of the real estate.
At the end of the contract period, the buyer obtains a traditional loan to pay off the balance owed to the seller.
There are currently 14 homes available in the area that can be purchased using a land contract.
Call me anytime to discuss what it takes to purchase using a land contract.
Chip Andis ~ Buyers Agent ~ working for YOU not the seller
Real Estate and Finance in ONE!
34 S. Telegraph Rd.
Waterford, MI... more