DON'T MISS A NEW LISTING AGAIN! Register Now FREE AUTOMATED EMAIL UPDATES |
Jim Horne
|
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
Jim Horne | 910-245-8683 | Contact Me
2480 Lobelia Rd. (Route 690) - Vass, NC 28394
Copyright © 2017, All Rights Reserved
©2024, Mid Carolina Regional Association of REALTORS®. All rights reserved.
The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange Program of the Mid Carolina Regional Association of REALTORS® MLS. Real estate listings held by brokerage firms other than The Lake Resort Properties LLC are marked with the Internet Data Exchange logo or the Internet Data Exchange thumbnail logo and detailed information about them includes the name of the listing brokers. The broker providing these data believes them to be correct, but advises interested parties to confirm them before relying on them in a purchase decision.
Information last updated on 2024-03-28 17:30:14.