FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free! *Contact Information is NOT Shared*
An alternative to a non-conforming loan is the use of a land contract, which is allowed in some states. A land contract is an agreement between a buyer and a seller, where the buyer agrees to make periodic payments to the seller. The title to the property only transfers to the land contract buyer on fulfillment of the land contract obligations.
A land contract can be helpful for those who need time to establish or improve their credit rating. There are only small closing costs, and payment can help establish a good mortgage payment record. This can help establish an overall good credit rating, and it is possible for the buyer to later refinance the land contract with a conforming loan.
On the other hand, there are risks associated with land contracts. Land contract purchases are not necessarily recorded in the public record, and there are no guarantees that the seller will be able to transfer a clear title to the buyer upon fulfillment of the land contract. There also is no lender assuring that the purchase price for the property is justified, and no inspection of the property’s condition.
Another alternative to a non-conforming loan is assuming the seller’s mortgage. By assuming a mortgage, if the mortgage is assumable, it is possible to save on closing costs, and may allow you to obtain a favorable interest rate.
Copyright 2019 Metrolist. All rights reserved. Information deemed to be reliable but
not guaranteed. The data relating to real estate for sale on this website comes from Sacramento
Metrolist and the Broker Reciprocity Program.sm. Real estate listings held by
brokerage firms other than Little Real Estate Services are marked with the BR logo and detailed information
about them includes the name of the listing brokers. All measurements and all calculations of
area (i.e., Sq Ft and Acreage) are approximate. Listing broker has attempted to offer accurate
data, but buyers are advised to confirm all items. Information last updated on 2019-08-23.
Terms of Usage Agreement