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Land Contract

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.

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Sadler Real Estate
610 East Morgan Street
Martinsville, Indiana 46151

765-342-7474 office
765-342-2262 fax

Email: jensadler7@gmail.com

Testimonials

To Whom It May Concern, The service and personal attention we received from Sadler Real Estate was exceptional! Their knowledge of the local market and their key contacts in the community helped us in selling our previous home and purchasing our dream log home. After patiently sending us listings and taking us to visit several homes, they made sure we got the best offer for our previous home and more importantly, the best value purchase for the new one! Regardless of whether you are buying or selling, we would highly recommend Sadler Real Estate to help you in this life changing move. We could not have asked for a better Realtor to guide us through the process. Sincerely, Terry and Betty Maxwell
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