Tracey, Other/Just Looking in wisc rapids

What is the difference between a Land Loan and Lease Loan?

Asked by Tracey, wisc rapids Thu Jun 19, 2008

I'm looking for rent to own houses and someone had mentioned that there are others called land loan and lease loan. They didn't fill me in much about it just that it's not consider "rent to own" anymore. I'm still debating if we should buy or containue renting, but I also don't like the idea of renting either! If it was up to me.. I would rather buy a home then renting! I'm still looking for a summer full-time job until my permenant job at the schools starts in mid August! Until then, my husband will be the only income and that's why I'm looking for a summer job. I know that if we plan on getting a home loan.. we both need to be working! A friend of mine said she thinks we should hold off on buying since there's only one person employed, but for us to try for a loan first! I told her that theres lots of grants out there, but she said we wouldnt qualify! Do we both have to be employed to get these grants? Would we qualify for those first time home owner grants?

Help the community by answering this question:


I'm not a lawyer, so this isn't legal advice.

However, I specialize in lease-to-owns (or rent-to-owns, or lease-options, or lease-purchases) and I've never heard of a "land loan" or a "lease loan." In different parts of the country, similar structures may be called "contract for deed." (There are differences; see: ).

All of these involve making payments to the owner and, at some point in the process, receiving the deed to the property.

There's also a similar way to accomplish the same end result using a land trust.

However, I have never heard of either a "land loan" or a "lease loan."

As far as getting grants, no. There aren't grants, in the usual sense, for homebuyers. There are a number of first-time purchaser programs. Some are promoted by lenders. In other cases, cities or counties will sponsor them. But they aren't grants.

Similarly there are a number of programs--AmeriDream and Nehemiah--that are down payment assistance programs. AmeriDream is at Nehemiah is at But there not grants.

If you want to buy conventionally (getting a mortgage up front), talk to a good mortgage broker to find out what programs you might qualify for. If you want to do a lease-option, that's fine, too.

Hope that helps.
0 votes Thank Flag Link Fri Jun 20, 2008
Don Tepper, Real Estate Pro in Burke, VA
It's great that you want to buy - and the market is a good one for first time buyers. Your best bet to answer these questions would be to talk with a loan officer at a bank or mortgage company. He or she would be most familiar with what's available for grants, how you qualify for various types of funding, and so on. That should be your first step - getting the answers on your financial picture, both now and in the near future, wehen you start your permanent job. The second step would be to find a good Realtor to represent you and help you find the right home. If you want, I can get you some names of loan officers and Realtors in your area. Just email me at Best of luck!
0 votes Thank Flag Link Fri Jun 20, 2008
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