Under what conditions would a seller sign to a land contract?

Question

Would they be more than likely to agree if you were to put a large down payment on the house, or agree to pay it off within a year w/a large down payment at the end? What should I know and what should I do to gurantee that this seller will let me buy this way?

Answer 1

A land contract is the way to go if you are sure you will get the backing in order to buy the home but as for the down payment I would try to pay as little as I can, but the best thing to do is talk it over with the owner and get an idea of what he is willing to accept. and go from there.......

Answer 2

With interest rates so low and lenders so liberal with their money, there are very few reasons for either buyer or seller to sign a land contract. 1st: the seller must own the property, he must have the mortgage paid off. 2nd: hire a real estate lawyer so you can get the contract properly executed and recorded and protect yourself. 3rd: set up an amortization schedule. This tells both parties what the payments will be and when it gets paid off (or “balloons”). I can e-mail this to you if you like. I need the selling price, down payment, if any, and the interest rate. You can still amortize a loan over 30 years and have it balloon after one.