In essence, land contracts are alternatives to traditional mortgages financed by the seller. These kinds of home contracts are typically put in place when the buyer is reluctant in taking out a formal mortgage through a bank or mortgage lender. As of 2015, nearly 10 million land contracts have been signed and are currently in use across the United States.
Essentially, land contracts can be used for most properties, such as vacant land, land for a house, apartment complexes, commercial property, and other property. Instead of taking out money from a lender or banker, land contract owners will make their payments on their property directly to the landlord or seller. These contracts are kept between you and the seller, making for a very personalized arrangement as the buyer.
Now that we have covered a little bit about what is a land contract, let’s discuss some noteworthy points about what does a land contract cover with Patriot Funding:
- Sales Price of the Property: This part of the contract covers how much the property is sold for. Once you pay off the total amount of principal, your obligations under the contract are over.
- Quick Closings & Flexible Buying Programs: Once you reach the time of closing, you will be satisfied that we make this process quick and painless. We will also incorporate the best suited payment plan designed just for you.
- Owner Financing on Property: Things change and so do our terms in a land contract. There are many reasons people agree to take back a note, deed of trust, mortgage, or contract. Some of these may be related to quick sales of property, hassle-free bank financing, a more qualified pool of buyers, and more.
Now, since we have covered a few basic points of land contracts, let’s look at some of the ways that the value of a land contract is determined:
The value of a land contract agreement is affected by the down payment, interest rate, total payment amount, the term of the contract, and the credit rating and payment history of the buyer. The kinds of land contracts, their terms and conditions, and the overall value of the property will ultimately impact the value of your land contract.
Much of the value of the land contract will be determined at the point of sale and when the property was most recently sold. Though, property owners can also keep good records and/or receipts of payments, obtain copies of the property insurance policy from the buyer each year, or verify that the property taxes are being paid on time.
In order to get the best overall understanding of the value of a land contract and why it might be the best fit for you, don’t hesitate to contact the experts here at Patriot Funding. We provide top-rate service combined with the most competitive pricing on land around, giving you a worthwhile experience all around!
Patriot Funding, LLC: Land Contract Homes & Buying a House on Land
For expert advice on discovering homes for sale under land contract, contact us here at Patriot Funding for advice on signing a land agreement, buying or selling land, or any kind of land purchase contract. Give us a call today at (888) 401-1542 or send us an email at email@example.com to get started!