land contract

What is a land contract? A land contract is a method of real estate financing in which a mortgage-holding seller finances a buyer by taking a down payment and subsequent payments in installments, but holds the title until the mortgage is fully repaid, refinanced, or sold. A land contract allows the buyer all the benefits of home ownership, including interest tax deductions, home value appreciation, and principle paydown.

How does a land contract with Queck Capital Management work? Queck Capital Management (QCM) has homes available for sale (View Current Properties) or we could purchase a house and sell to you on a land contract. Basically, QCM will act as your lender.

What is the biggest benefit of a land contract? A land contract allows people who are unable to purchase a home through traditional financing the chance to start building equity in a lasting investement. With a land contract, you are not a renter--you are a homeowner. You reap the benefits of price appreciation and interest tax deductions. Making minor improvements such as painting, carpeting, and landscaping can significantly increase the value of your home. Unlike a rental unit, the improvements benefit you and not your landlord.

Am I responsible for repairs, taxes, and insurance for the property? Yes, as a land contract owner, you are responsible for all aspects of your home just as if you had a traditional mortgage with a financial institution.

If I currently rent, why should I enter into a land contract? Homeownership can be the greatest single way to accumulate wealth. As a renter, you build no equity and retain no benefits. A land contract offers you the chance to build equity in a home, and usually for a monthly payment that is not much more than a typical rent payment.

Who is your typical land contract holder? Usually, we enter into land contracts with solid people who have had trying or unpredictable circumstances in their lives, and who need to either establish or repair their credit. I oftentimes say my primary goal is to find good, honest people.

I want a home and am interested in a land contract. What is my next step? I would first encourage you to visit your financial institution or mortgage broker to see if you can obtain traditional financing. If you cannot secure traditional financing, you should fill out a prequalification form. Go to "View Current Properties" and determine if you are interested in one of the homes we have available. If so, contact me to set up a time we can go through the home and I can answer any questions you might have. Check back frequently as we are always adding homes for sale.

Will a land contract improve my chances for tradtional financing? Absolutley! Successfully maintaining your land contract agreement will show your financial institution that you are able to handle the responsibilities of homeownership. Timely payments will greatly improve your chances to obtain traditional financing at a lower rate.

You would be a good candidate for a land contract if you:

Want to buy a home but cannot get a traditional bank loan due to:

No credit or slightly poor credit
Bankruptcy or foreclosure
Change of employment
Change of marital status

Have a good job/income but need time to build your credit
Have a successful rental history of on-time payments
Have a down payment of at least 20% of the purchase of your home