Welcome or Register
Back to Table of Contents

Land Contract

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.

Back to Table of Contents

Rhonda Montgomery Real Estate, LLC
4218 Veterans Blvd Del Rio, TX 78840
Office Phone: (830) 775-3704

Rhonda Montgomery, Broker/Owner
Cell: 830.313.0106
Rhonda@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Dawn Clayton, REALTOR
Cell: 830-719-5479
Dawn@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Cesha Hernandez, REALTOR
Cell: 830-719-3950
Cesha@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Amanda Stanford, REALTOR
Cell: 512-587-3017
Amanda@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Tony McDonald, REALTOR
Cell: 830-734-5352
Tony@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Marie Pereles, REALTOR
Cell: 830.734.1721
Marie@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Jana Crane, REALTOR
Cell: 830.703.6357
Jana@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Mary Smith, REALTOR
Cell: 830.734.7206
Mary@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Reyna I. Diaz, REALTOR
Cell: 830.719.3404
Reyna@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

Christina Santos, REALTOR
Cell: 830.765.6086
Christina@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

 

Gabriel Santos, REALTOR
Cell: 830.734.0198
Gabriel@RMontgomeryRealEstate.com
Texas Real Estate Commission Information About Brokerage Services

 

DON'T MISS A NEW LISTING AGAIN!



By registering, you are able to get custom
listings emailed to you when new properties come on the market and save your favorite homes. We never share your contact information. 
 

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu