Many sellers will share Just because you are not qualified for a home loan in the eyes of the bank doesn't mean you shouldn't be a homeowner. You may not have much money saved for a down payment yet, and you are still earning a relatively small salary - but you KNOW that will change soon. They won't kill your first home deal just because you don't presently meet their standards for income and/or amount of down payment available.
Not having the bank involved in your real estate transaction is good in an important way. This form of ownership en"titles" you to all of the rights (like the tax benefits) and privileges (like paying the property taxes!) that cash buyers get. You do not receive the deed to your property until you fullly discharge the land contract, but you do get what is known as equitable title. Whether you use your own funds and pay cash, or if you borrow the money from a lender, or if you buy on the installment plan (land contract sale) directly from the seller - you OWN the property!
In this type of transaction, the seller/vendor makes the final decision about whether or not to make the loan. The seller is known as the VENDOR; you, the buyer, are known as the VENDEE. Some of the terminology is slightly different. Using a land contract (or "contract for deed" or other similar terms) to buy your home is very much like getting a mortgage loan from a lender and using these funds for your purchase.
Not having the bank involved in your real estate transaction is good in an important way. This form of ownership en"titles" you to all of the rights (like the tax benefits) and privileges (like paying the property taxes!) that cash buyers get. You do not receive the deed to your property until you fullly discharge the land contract, but you do get what is known as equitable title. Whether you use your own funds and pay cash, or if you borrow the money from a lender, or if you buy on the installment plan (land contract sale) directly from the seller - you OWN the property!
In this type of transaction, the seller/vendor makes the final decision about whether or not to make the loan. The seller is known as the VENDOR; you, the buyer, are known as the VENDEE. Some of the terminology is slightly different. Using a land contract (or "contract for deed" or other similar terms) to buy your home is very much like getting a mortgage loan from a lender and using these funds for your purchase.
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