Land Contracts are seller financed properties in which you own the property and are paying the monthly payments to the seller until the balance is paid off. The land contract will allow you to own your home while your repair your credit to refinance at a lower interest rate if a balloon payment is required.
What is needed for a land contract is around 10-30% down towards the house and a monthly payment that will allow you to pay off the house or a balloon structure that will allow you to refinance through more conventional mean and ideally at a lower interest rate.
Example of Balloon Structure:
Property $100,000
Down Payment $20,000
Balance $80,000
Interest rate 8%
Payments (w/o tax & Ins.) $765
Period (15 yr schedule) 2 years
Refinance Amount $74,000
In some cases the seller of the house is willing to land contract the property until it is fully paid off and this tends to be the most common form of land contract structures. Land Contracts though are on a case by case basis and depend on the seller and buyer agreeing to terms. For more information and to see what is available on the market feel free to contact us.
Phone Number is best way of contact so we can build a 1on1 relationship and help us understand what your property needs are and what land contract best suits you.
