It is no secret that times are getting hard for everyone. Unemployment is on the rise and many people are not able to buy homes anymore due to bad credit. There is an option for potential homeowners who would like to purchase a home. The most practical method to buying a home even if you do have bad credit is to purchase the house on a lease option/land contract. With a land contract you would put an agreed upon sum of money down and make a monthly payment every month. A land contract/lease option is very similar to renting except for the fact that the home will be yours at the end of the term. This can be done on any home where the homeowner is willing to accept a land contract/lease option. The typical terms for a land contract(lease option) is typically anywhere from 5-20 years depending on the purchase price. In order to find a home to purchase on a land contract I would suggest looking at homes that have been on the market for a little bit longer, the least being 60 days. Banks are typically not willing to entertain land contracts but private homeowners will be more willing to do this. Once you find the house that you would like to purchase, call the agent if it is listed and tell them that you would like to make an offer. You can have the agent help you prepare the paperwork or you can make the offer yourself. Before you contact the agent you want to make sure that you have the down payment amount which is usually 3-5% of the purchase price, make sure that you have the purchase amount which is typically higher than the list price because you have to factor in future appreciation of the home. If the asking price is $50,000 for example, offer the homeowner $65,000 to be paid off over a duration of years. Make sure that you factor in taxes and insurance when making the offer amount in terms of monthly payment to the homeowner. If the homeowner is not willing to accept the terms look at other homes until someone tells you yes.
We buy homes in any area, you can buy a home from us and if you need more help finding your dream home visit www.mipropertydoc.com
December 27th, 2012 under
Creative financing by mipr0582