2007-01-02 04:18:01 · 8 answers · asked by Deborah Z 3 in Business & Finance ➔ Renting & Real Estate
Land Contracts --contracts for deed etc give you mortgage credit and after1 year can be treated as a refi of the property if executed. By that I am saying should be recorded in the court house of the county where you live with the register of deeds. With that having been said then this could cause a problem if there is a mortgage on that property as it will trigger the due on sale clause in that current deed of trust. In order for you to obtain financing at the very best interest rates it must be in your name at least 6 months with a 12 month history. You can get 100% loan at a 580 score or better in most states. Any un-recorded land contract also has inherent risk of loss. What happens if th current owner gets sued or is foreclosed upon? You could loose what you have in the property and any equity that has accrued since taking possession
I am a mortgage banker in Tennessee
2007-01-02 04:36:51 · answer #1 · answered by golferwhoworks 7 · 0⤊ 0⤋
It has been done for the past several years, unfortunately with some disastrous results for those that got in with no down payment and now cannot refinance into better rates or sell because the property is worth less than they purchased it. Most lenders have done away with the 100% purchases (which was two loans combined usually to cover 100% financing), but FHA allows 3% down payment- and funds can be gifted, and FNMA announced effective June 1, they will also allow 3% down payments.
2016-05-23 06:30:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
With a credit score of 580 you can get 100% financing. A land contract is kind of like rent to own for houses.
2007-01-02 04:25:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Phil Speer, Ph.D., started his real estate investing career 25 years ago. With no cash or credit and using only a $10 bill, he purchased $1 million in properties his first year, and accumulated $10 million in properties within 4 years.
2007-01-02 06:24:19 · answer #4 · answered by wts 1 · 0⤊ 0⤋
BEFORE you do a land contract apply for either FHA, or if it is in a rural area-- apply for a rural development loan. I have pretty bad credit too and i found that the credit uniouns (at least in our area) offer very leanient "blemished credit loans".
2007-01-02 04:30:20 · answer #5 · answered by kacaswell28 1 · 0⤊ 0⤋
Many programs are available that provide 100% financing. More importantly, good credit can be quickly improved to provide a better rate.
This should also help you in your pursuit to buy a home.
2007-01-02 04:49:13 · answer #6 · answered by loanman46 2 · 0⤊ 0⤋
If you have no money to put down ask the seller to pay for the cosing costs. They may increase the sales agreement to cover the costs.
2007-01-02 04:52:40 · answer #7 · answered by Anonymous · 0⤊ 0⤋
check creonline.com to learn more about land contracts
2007-01-02 05:06:38 · answer #8 · answered by Anonymous · 0⤊ 0⤋