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.
Faye Hunter, Broker
Century 21, The Hunter Group
114 South Main Street
Statesboro, GA 30458-1475
I was very pleased with Jessica in every way. After our first meeting she started right away with selling my mom's house. I didn't have to worry about one thing. Jessica is an excellent agent. She is very personable but professional. I live out-of-state but she kept me well informed. She has a great personality. Jessica showed that she has morals and values which are valuable traits to me. I would definitely recommend her to anyone. The sale was very quick. You are very fortunate to have Jessica working for you. The process from beginning to end went very smoothly. Thanks to Jessica.Vicky Click,Southport, NC April 27, 2018
When you have a very patient friend who is also your real estate agent, you are doubly blessed! This entire process of prepping to sell and selling Mom's house was made much easier thanks to your guidance and patience - again, the "p" word. From letting me know what to expect, to determining what "fair" means, and all the other minute in between. I relied on your experience and advice. You did not once let me down.
Thanks for not only being the trusted consummate professional, but for being a great family friend. Best always, Marianna Marianna Voiselle, February 6, 2018
Thanks for all your help in making our "dream home" a reality. We really appreciated that you went the extra mile to get us the best price for our home. You are truly a professional.
In all our dealings with Realtors over the past ten years, we have never met anyone as helpful and energetic as you have been. Without hesitation, we would highly recommend your service to anyone who is looking for an experienced Realtor who cares about getting things done and doing them right! Thanks for taking such good care of us, we couldn't have done it without you!