Welcome or Register
Back to Table of Contents

Land Contract

An alternative to a non-conforming loan is the use of a land contract, which is allowed in some states. A land contract is an agreement between a buyer and a seller, where the buyer agrees to make periodic payments to the seller. The title to the property only transfers to the land contract buyer on fulfillment of the land contract obligations.

A land contract can be helpful for those who need time to establish or improve their credit rating. There are only small closing costs, and payment can help establish a good mortgage payment record. This can help establish an overall good credit rating, and it is possible for the buyer to later refinance the land contract with a conforming loan.

On the other hand, there are risks associated with land contracts. Land contract purchases are not necessarily recorded in the public record, and there are no guarantees that the seller will be able to transfer a clear title to the buyer upon fulfillment of the land contract. There also is no lender assuring that the purchase price for the property is justified, and no inspection of the property’s condition.

Another alternative to a non-conforming loan is assuming the seller’s mortgage. By assuming a mortgage, if the mortgage is assumable, it is possible to save on closing costs, and may allow you to obtain a favorable interest rate.

Back to Table of Contents

Quick Search


view all


Any

Any

No Min.

No Max.

Testimonials Page

It is difficult to be an out of town buyer. We were worried about time constraints, difficulty with schedules of all parties involved - our schedule, seller's schedules, Donna's availability, etc. The out-of-town visits were short and day time to view properties in early spring was limited. Donna navigated all those difficulties as a true Champion! She made sure at all times and under all circumstances that our schedule and our needs were met. We found a house we wanted and needed. Donna's patience is limitless, her knowledge of the area is vast and her friendliness is genuine. Ludmila Pruner
It was a pleasure to work with someone who thorough,effective and professional.I feel fortunate that I found someone who was patient and kind as I looked at dozens of listings until I found the one that suited me best. The best part, however, is that I feel I've made a new friend and hope we will stay in touch. I certainly will sing your praises to others who talk about needing the assistance of a realtor. Pam Garland
View All