Archive for May 2008

Rent to Own -vs- Installment Land Contract

May 22, 2008 by Mandie Spudich.


I get a lot of calls from people who are looking for a rent to own property.  This is very rare to find in today’s market, however there is another variation known in the Real Estate industry as an Installment Land Contract.

 So What’s The Difference?

Commitment & Qualification

  A Rent to Own Contract is very vague and gives the buyer the OPTION of purchasing the home at the end of the contract term.

 

An Installment Land Contract is a full fledged sales contract providing for seller financing for a specified term followed by a balloon payoff at the end–This is usually accompanied by an executed purchase agreement that would be standard in any other home sale.   Along with this is a pre-qualification letter from your lender stating that at the end of the term you will be finance-able for the balance barring any unforeseen circumstances.   Also in this contract your monthly payments will included principal and interest just like a regular mortgage would and you reduce the amount owed based on the agreed upon payment schedule.

 

The Installment land contract is a very good purchasing option for anyone who has a bankruptcy, credit that is borderline, or is waiting for a sum of money to have as a down payment.  The key is that you must be able to provide evidence that you will be able to obtain appropriate financing when the time comes.

 

Having an experienced agent who is well versed and experienced in this type of sale is critical to getting it done properly and accepted!  Not all agents are created equally, it is important that you find one who knows what all is involved with this type of contract and the best way to find out is to ask!  

 For more detailed information

 Call:  724 864 2121 Ext 20

Or

Email: mandie@blog.mandiespudich.com

 

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