Selling land contracts is one lucrative way to make an income as well as attracting buyers who cannot qualify for a traditional mortgage. By selling a contract, you are able to collect interest, much like mortgage lenders do on financing a mortgage. Depending on the mortgage rate you’re able to charge, you might be able to see a better ROI in comparison to other financing options.
Though, the experts at Patriot Funding want to prepare you properly before you begin the process of selling a home contract. What might be your largest asset, buying and selling your home is a huge ordeal. Plus, selling homes on the contract is usually the only option for people who own their homes outright.
So, to better understand what this process might mean to you, let’s define some key points to get you acclimated with this process.
Seller financing… what is it? Also known as owner financing, seller financing means that the seller is financing the property for a buyer. This directly relates to the kind of financing is entailed, such as contractual financing instead of traditional mortgage financing. Everything is paid to the seller — monthly payment, principal, interest, taxes, and insurance — as the seller owns the property. The end of the loan usually includes a balloon payment and transitioning the full ownership of the property from the seller to the buyer.
What are land contracts exactly? Land contracts are agreements that consist of home financing conducted entirely by the seller. Selling a house on the contract is a much more streamlined approach to buying and selling property in comparison to seeking out a lender and going through the traditional process.
Tips for sellers in an owner-financed land contract. Here at Patriot Funding, we act as a lender to vet buyers and make sure things like income or employment, credit history, debt, and other matters are not an issue in the long term. Since you will be responsible for the selling of your property, you will want an experienced professional to assist you before offering a finalized land contract to a buyer.
The benefits of selling a home on land contract. There are so many benefits to selling a house on contract. A lot of buyers may not be able to be approved for a loan, regardless of their credit, income, or debt history. Traditional mortgage interest rates fluctuate all the time; making it hard to determine the right lender to seek out. Closing in a traditional setting can take weeks or months. Plus, many mortgage loans take decades to be able to pay off. All these things can be remedied by selling in a land contract. Many of the traditional processes through a mortgage lender become more simplified between a buyer and seller.
In order to get the best overall understanding of the value of a land agreement 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 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 the land contract, contact us here at Patriot Funding for advice on signing a land agreement, buying or selling a land contract agreement, or any kind of land purchase contract. Give us a call at (888) 401-1542 or send us an email at firstname.lastname@example.org to get started!