Chris Bonomo 303-678-7886 | Email Me | Client Login | Register |
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 ContentsChris Bonomo
Your Castle Real Estate
1776 Topaz Dr.
Loveland, CO 80537
Phone: 303-678-7886
Email: ColoradoHomes@mail.com
DON'T MISS A NEW LISTING AGAIN! FREE AUTOMATED EMAIL UPDATES |
Chris Bonomo | 303-678-7886 | coloradohomes@mail.com
Your Castle Real Estate | 1776 Topaz Dr. | Loveland, CO, 80537
Copyright © 2016. Chris Bonomo, All Rights Reserved
©2024, Northern Colorado Regional MLS. All rights reserved.
Provided for limited non-commercial use only under IRES Rules. Information deemed to be reliable but not guaranteed. The data relating to real estate for sale on this website comes from IRES and the Broker Reciprocity Program.sm. Real estate listings held by brokerage firms other than Your Castle Real Estate are marked with the BR logo and detailed information about them includes the name of the listing brokers. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. listing information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
Information source: Information and Real Estate Services, LLC. Provided for limited non-commercial use only under IRES Rules © Copyright IRES.
Compensation information displayed on listing details is only applicable to other participants and subscribers of the source MLS.
Information last updated on 2024-03-28 06:30:04.