I am going to purchase my first property using a land contract. I would like to know if anyone has used this method before? And, if so, where you able to refi the property and pay off the owner? Kevin
Kevin,
I've drawn up many landcontracts,. Before going into this method, you need to answer the following questions:
1) Why can't you get a loan now?
2) If you don't qualify for a loan now, can the reason be solved in one to two years?
3) Are you buying a FMV? Or under?
4) If at FMV, are you putting a big enough down payment, to start with equity?
5)Are you going to have enough of the monthly payment going to the principle.
These questions will be able to determine your chances of securing a mortgage in a couple of years.
Quote:
On 2004-05-24 18:37, tinman1755 wrote:
Kevin,
I've drawn up many landcontracts,. Before going into this method, you need to answer the following questions:
1) Why can't you get a loan now?
2) If you don't qualify for a loan now, can the reason be solved in one to two years?
3) Are you buying a FMV? Or under?
4) If at FMV, are you putting a big enough down payment, to start with equity?
5)Are you going to have enough of the monthly payment going to the principle.
These questions will be able to determine your chances of securing a mortgage in a couple of years.
Lori
At this time, I can't get a mortgage. But within 2 years I will be able to get mortgage. This property is a rehab. I am looking to buy it, repair it, than refi it with a renter paying the new mortgage. Also I will have enough going towards the principle to get started.
If you will qualify for a mortgage in two years, have the correct debt ratio, have enough equity in the house. The land contract system would work for you. Make sure you pay with a check or money order each month and make a copy of it for your records. Do not make any major purchases within the next two years. Make sure you pay every bill on time. Just remember to put money away in case your renter doesn't pay you on time.
Good Luck,
Lori
_________________ real estate investor since 1988. I like to find creative solutions for my real estate headaches before they become problems. Most importantly, MOVEMENT DOES NOT EQUAL PRODUCTIVITY[ Edited by tinman1755 on Date 05/24/2004 ]
Kevin,
I've drawn up many landcontracts,. Before going into this method, you need to answer the following questions:
1) Why can't you get a loan now?
2) If you don't qualify for a loan now, can the reason be solved in one to two years?
3) Are you buying a FMV? Or under?
4) If at FMV, are you putting a big enough down payment, to start with equity?
5)Are you going to have enough of the monthly payment going to the principle.
These questions will be able to determine your chances of securing a mortgage in a couple of years.
Lori
[addsig]
Quote:
On 2004-05-24 18:37, tinman1755 wrote:
Kevin,
I've drawn up many landcontracts,. Before going into this method, you need to answer the following questions:
1) Why can't you get a loan now?
2) If you don't qualify for a loan now, can the reason be solved in one to two years?
3) Are you buying a FMV? Or under?
4) If at FMV, are you putting a big enough down payment, to start with equity?
5)Are you going to have enough of the monthly payment going to the principle.
These questions will be able to determine your chances of securing a mortgage in a couple of years.
Lori
At this time, I can't get a mortgage. But within 2 years I will be able to get mortgage. This property is a rehab. I am looking to buy it, repair it, than refi it with a renter paying the new mortgage. Also I will have enough going towards the principle to get started.
Kevin
If you will qualify for a mortgage in two years, have the correct debt ratio, have enough equity in the house. The land contract system would work for you. Make sure you pay with a check or money order each month and make a copy of it for your records. Do not make any major purchases within the next two years. Make sure you pay every bill on time. Just remember to put money away in case your renter doesn't pay you on time.
Good Luck,
Lori
_________________
real estate investor since 1988. I like to find creative solutions for my real estate headaches before they become problems. Most importantly, MOVEMENT DOES NOT EQUAL PRODUCTIVITY[ Edited by tinman1755 on Date 05/24/2004 ]