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

Don't Miss a New Listing Again!
Register to create custom MLS home searches and have results auto-emailed to you

*Contact Information NOT Shared*

Already registered? LOGIN

AUTOMATED EMAIL UPDATES
Register for access to all the
features this site offers.
Save your favorite Searches

for auto email updates!

  MAXIMUM RESULTS
REAL ESTATE INC

Three great offices to serve you!

1228 Westridge Pkwy
Greensburg, IN 47240
Phone: 812-663-2255
Fax: 812-663-9754
www.maximumresultsrealestate.com
 
101 N Morgan Street
Rushville, IN 46173
Phone: 765-938-5888
Fax:765-938-5891
www.rushvillehomes4sale.com

703 N Harrison St
Shelbyville, IN 46176
Phone: 317-825-0623
Fax: 317-825-0649

Contact Us

We are happy to help you make the best decision for you whether you are buying a home or selling a home.  Contact us TODAY so we can get started.





* fields are required



Christie McLaughlin | 812-593-5638 | Contact Us
1228 Westridge Pkwy - Greensburg, IN 47240
Copyright © 2018, All Rights Reserved