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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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Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

Steve Carter
RE/MAX Country
1605 Grand Avenue, Suite C
Glenwood Springs, CO 81601
Phone: 970-948-6145
Office: 970-945-1215
Email: stevecarter@sopris.net
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“I have worked with Steve as both buyer and seller on transactions. He is energetic, knowledgeable and works with integrity. Steve knows the market and works tirelessly to meet your needs. I will use Steve's services again in the future.” Kimberly Henry
“We really enjoyed working with Steve Carter while buying our first home in Colorado. Steve was enthusiastic, honest, and worked hard to find a house to meet our needs. He knows the area, knows the market, and has a no-nonsense approach to home buying. We definitely would recommend Steve to anyone in search of a good Realtor. Matthew and Lauren McDonell” Matthew McDonell
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“Steve is a great broker who looks out for his clients. He has extensive experience and is a good broker to go to for advice. Steve is easy to work with and is always professional.” Shannon Kyle
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Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.