land-contract | Mortgage Loans

Details: Category: Mortgage Loans Mortgage Loans; Published: 05 September 2006 05 September 2006; Hits: 21195 21195

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.

Featured

Contact Me Today!

Don Wixom
RE/MAX Executives
16201 Idaho Center Blvd.
Nampa, ID 83687
Direct: (208) 880-5039
Office: (208) 466-0002
Fax: (208) 466-2227
Email:
This email address is being protected from spambots. You need JavaScript enabled to view it.
Realtor, ABR, CRS, GRI,
e-Pro Internet Professional

Quality Service Certified®

2000 "Realtor of the Year"

What my clients say

"Thank you Don for your considerate and professional help on selling our house. Your informative correspondance we recieved before deciding to list it, got you the house, and your continued contact to let us know what efforts were being made to advertise and show the house were greatly appreciated. Showing mutual respect, we feel like we have made a new friend!"
~ Bill and Sharrel Cash, satisfied sellers

"Thank you so much for all of your efforts, patience, perseverance and professional behavior through the ordeal of selling our house. The way you dedicated yourself to your work and to our needs truly showed your eagerness and ability to help. Thank you again."
~ Jan Byers, satisfied seller

"Just wanted you to know that we really appreciate how smoothly the sale of our home went. It really could not have worked out any better. The wide marketing of our home you initiated really paid off. Thank you for a terrific experience. You have our highest recommendations, and we'll be more than happy to pass it along. God Bless!"
~ John and Jeanie Mowery, satisfied sellers

"We cannot thank you enough for your time and patience in finding our new home. There's no way we could've done it without you! You made all our dreams come true and we will always hold you dear for that."
~ Meguel and Kris Escutia, satisfied buyers

"Thanks to Don Wixom, we have been enjoying our new home for six months now. Don as the realtor selling our house worked very hard for us. He helped us through all the complex paperwork involved in making offers, getting a loan, etc. Don paid attention to detail and kept us well informed about how things were going. When things needed to be done, Don was readily available, seeing us through a home inspection, even crawling under the house in the dirt and cobwebs when we asked him to. Don was always only a phone call away. We still remember his phone number, we called him so much! Don has a wealth of experience and resources to offer. We would definitely recommend him to anyone wanting to buy or sell real estate."
~Scott and Naomi Watson, satisfied buyers

"We were long distance buyers. We had been through some major life changes in 2005 and had first contacted Don Wixom in August of 2006. He stood by us 2 1/2 years showing us houses, driving out to houses and emailing us pictures when we were unable to go ourselves, never knowing if he actually would have gotten a sale from us and he never complained or pressured us once.
He always treated us with great respect as if we were his only customer. Don has done more for us than we would have done for ourselves. He gave us great advice. He was always learning what it was that we were looking for. As our needs changed midway through our searching he adjusted to them.
His website allowed us to search the multiple listing service without addresses and phone numbers needing to be given. He would always check into and answer our questions and requests.
When buying or selling in Idaho we would never consider anyone but Don Wixom. He stayed with us for the long haul and we will stay with him."
Steve and Jean McBee, Buyers Nampa

"Thanks Don, for the link to IDX app for iPhone. Works great! All the information I need right at my finger tips! Thanks for always leading from the front!"
Ernie Garza, Buyer

Land Contract