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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Harold it was a pleasure having you as my agent. You were always professional competent knowledgeable and a saint having to work with selling agent. I would highly recommend you to any of my friends and family. I especially noted how quick you were to respond to all my request and communications. I love my new home and looking forward to you stopping by to see the changes I made. Thanks again!Rosemarie Miller
Diane was Amazing. She walked me through the selling process, step by step. She was very knowledgable about the area, pulled comps often, and made sure to keep me informed about my competition throughout the entire process. She is very hands on and always available when needed. She even did a little manual labor getting the house ready to list. She did her homework well and sold my house in 4 day, above asking!!
As a new agent, if she didn't know the answer, she always found out quickly and responded timely.Michele, Pinehurst NC