Benefits of Land Contracts
When you are buying a land or even building for your own business you might have another option besides securing a traditional mortgage. Most of the times land contract provides the property buyers with an opportunity for buying a tract of land or even building without having to qualify all the mortgages.
Inside the terms of the land contract, all the buyers can assume all other ownership of the property so that he meets all the terms of the contract. Payment can go directly for the seller instead of third party lenders which can let small businesses owners without all the credit is obtained from the mortgage. It can be a facility which may be beneficial for obtaining any kind of land contracts.
One of the biggest advantages of land contracts over the mortgage is that land contracts do not even require the stellar credit to qualify. You can also qualify for the land contract with poor or little credit. This is the decision which lies in the hands of sellers who can alone decide who they wish to sell the land to. If the buyer has any credit issues, then the seller can decide to get some kind of deposit.
Even though the land contracts will enter you into a very long obligation with all the sellers, you can be going in this route can help to free up the gain additional capital. Also, not having any debt obligation on your credit card can make you look a lot more attractive.
Land Contract, 10.0 out of 10 based on 2 ratings
Previous post: INTEREST DEFERRED BALANCE