8300 Carmel Avenue NE Suite 203
Albuquerque, NM 87122
Office: 505-265-5111
Cell: 505-321-8008
Email Linda
Selling New Mexico
since 1977
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 Contents8300 Carmel Avenue NE Suite 203
Albuquerque, NM 87122
Office: 505-265-5111
Cell: 505-321-8008
Email Linda
Selling New Mexico
since 1977
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Linda Barton | 505-321-8008 | linda@lindabarton.com
RE/MAX SELECT | 8300 Carmel NE Suite 203, Albuquerque, NM 87122
©2024, SWMLS, Inc (Albuquerque Metropolitan Board of REALTORS®). All rights reserved.
Some of the information contained herein has been provided by SWMLS, Inc. This information is from sources deemed reliable but not guaranteed by SWMLS, Inc. The information is for consumers' personal, non-commercial use and may not be used for any purpose other than identifying properties which consumers may be interested in purchasing. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.
Information last updated on 2024-03-28 06:30:16.