Purchasing a home without having to deal with a lender can be a liberating experience and it’s important to know land contract advantages so that you may make a careful decision. When looking at all the different properties out there for sale chances are you’ll run across some that are listed as land contracts and this may make you consider the home more seriously than if you had to go through a traditional lender. If you’re in a credit crunch then you may be searching for properties that are offered as land contracts.
Poor Credit History
One of the best land contract advantages is the flexibility many people who offer their property for sale in this manner have with a person’s financial history. There are times they don’t perform credit checks. If a buyer is honest and discloses what they have to deal with as far as a financial past and they still have the money for the down payment sellers will often work with them. It’s a huge land contract advantage that people can often get into a home this way when they may not be able to purchase a home if they had to go through a bank or mortgage company.
Lower Down Payments
Another land contract advantage is that some sellers aren’t concerned with a large down payment. If you’re a purchaser who has decent credit and can show they have made good payments elsewhere but just haven’t been able to save up money for a substantial down payment they may be able to work with you and offer a very low or no down payment. Sellers may also allow a buyer a grace period to come up with the down payment before they close on the home and move in. Because it is often two individuals working out the deal the initial down payment can be negotiated and worked out for the individual’s needs.
Land contract advantages can also come in the form of flexible payment plans. Perhaps the buyer knows they won’t have a large amount of money to cover moderate payments until a few years out. If this is the case the seller may offer balloon payments. This is where a buyer pays a certain amount and then at a set date they need to have a large sum of money that they can pay on the balance of the property price. They may also decide to allow the buyer to make smaller payments and then larger ones a few years down the road. There is no end to the types of payment plans that a buyer and seller can come up with and this is a huge land contract advantage.
If you’ve found a piece of property that suits your location and functional needs and it’s offered at a land contract price that is attractive you should put it at the top of your list. There are so many ways that land contract advantages can help a person out that it’s silly to not consider them when looking into purchasing a home.