| Advantages of Land Contracts for the
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| | will not have this expense when you buy
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| buyer:Buying property using a land
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| | on a Land Contract. If the seller feels
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| contract may benefit you if you have a
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| | she needs a higher yield, she should have
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| difficult time finding bank financing due
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| | insisted on a higher interest rate when
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| to credit problems or have
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| | you were negotiating your purchase
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| non-traditional income sources. In that
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| | agreement.Advantages of Land Contracts
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| case, without the use of a Land Contract,
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| | for the seller:A Land Contract allows the
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| buying your home would be much more
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| | seller to make additional money on the
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| difficult.Won't your income and savings,
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| | financing of the sale of their property,
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| crucial aspects of your financial status,
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| | collecting not only the purchase amount
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| and your ability to handle more debt (a
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| | but also the interest on the principal
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| mortgage loan) increase in the coming
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| | balance. By acting as the bank in the
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| years? Of course they will! But a lender
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| | property transaction, she gets to make
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| bases its decision on what you make NOW,
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| | the profit as the bank "normally"
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| and what you have saved NOW. Many
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| | would.Selling a home on Land Contract
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| individual sellers, on the other hand,
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| | when you have an underlying mortgage loan
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| will recognize that your financial future
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| | is a time-honored method of profiting in
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| is indeed bright.Many of the usual
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| | the residential real estate market. The
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| closing costs are eliminated when you use
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| | Land Contract payment will usually far
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| a Land Contract to complete your real
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| | exceed the mortgage loan payment amount,
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| estate sales transaction. Purchasing a
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| | due to appreciation.When a home is sold
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| title insurance policy for the lender is
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| | using a Land Contract, the seller retains
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| not an applicable cost when there is no
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| | ownership rights. She can pledge the
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| bank involvment in the transaction.Also,
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| | equity in the home as collateral, or even
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| you probably don't need to pay for a new
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| | get a bank loan in the amount of the
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| survey if you are buying a home in an
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| | principal balance.There are considerable
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| established, platted subdivision. There
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| | advantages of land contracts for both the
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| is no need for an appraisal, either. You
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| | buyer and seller when a Land Contract is
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| and the seller have already agreed upon
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| | used to convey the property. Another
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| the value of the home. Neither of you are
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| | factor that can benefit both buyer and
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| concerned anymore about the prices that
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| | seller is the fact that the sale can be
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| comparable homes have sold for in the
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| | closed tremendously faster. It is not
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| area.The single biggest closing cost is
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| | unusual for a Land Contract transaction
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| usually the discount points charged by
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| | to be closed within a few weeks of the
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| the bank to increase its yield, or its
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| | final signing of the sales agreement.
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| profit from the interest on the loan. You
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