Owner funding is definitely a appealing substitute for conventional loan providers, and perhaps might be better to get. Needless to say, in this situation funding is completely left to your discernment for the land owner, so that you should be ready to negotiate a good deal. Nevertheless, if you’ve been refused by the bank or credit union, owner funding is the next option that is best.
In terms of land that is buying there’s two fundamental types of owner funding – ‘contract for deed’ and ‘mortgage/trust deed’. Each has its very own advantages that are own drawbacks for both buyer and vendor.
- Contract for Deed – often described as a ‘land installment contract’, this permits the customer to spend the land owner in installments over a predetermined time frame. (altro…)