Reply With QuoteNope, it is just called a "land contract". A lender is not the person to talk to about this as they don't make any money on them, real estate agents should know the scoop. It is a simple contract between you and the seller.
After my divorce I rented a house, the owner had inherited it when his parents died. He offered to sell it to me as he liked the idea of not paying agents fees, my girlfriend (the mortgage lender) told me about land contracts (she bought her house that way) and it was a good way for me to get into a house in a sort after area for the equivalent of one months rent as a down payment and my monthly payment went to the seller.
The contract was made out for a year, (you can do more), this gave me time in which to refinance the house totally. Equity was building and when the time was right we did a refi (it was not a purchase as I already technically owned it). It appraised at $67000 more than I needed so no mortgage insurance, the whole amount I paid monthly was tax deductible because it was interest only, no principle and here I am with a house. No deposit to speak of and would never have known it existed if it were not for my young lady giving me the inside scoop.
Kind of hard to explain but if you ask around there will be someone who knows about them. There are those who may advise against it but it is likely they won't make money from it....my girlfriend doesn't recommend it to many...
[ July 10, 2003, 08:43 PM: Message edited by: burbanite ]
