Pros And Cons Of Owner Financing Land




Investing in a land or real estate is a good option to make the future financially more secure. This is a good way to lock the saving and get a better return in the future. The people who are interested in this investment have a common question, "If the owner will be financing the property". It completely depends on the owner's terms. To find a person offering owner financing land can be found on the internet or with help from contacts. In this post, we shall talk about the pros and cons of buying a land with the owner financing.

Pros Or The Benefits For The Buyer

1. Less Amount Of Down Payment

The main advantage to the buyer of the choosing the owner financing land is that its expense is considerably lesser than the conventional lender or bank. In the case of owner financed land, you can get the land at 20% down payment. This amount is very less and can be arranged easily. You can even save this amount by the savings you do.


2. Minimal History Check

Since in owner financing, there is a less concentration on what was your credit history, you can the finance easily. If you have a bad history of paying your credits, the owner might finance the land at a higher downpayment, but if you go to a bank or conventional lender with the same record, there are more chances of refusal. There is also a need for various documents in a bank or with a lender. This is not the case with owner finance.



3. Minimal Closing Expenses

The closing costs in the owner financed land are nil or very less. Things like points, flood certifications, appraisals, etc. are hardly ever needed. The savings due to the minimal closing expenses can be used for a short-term financing.


4. Quick Deals

There is no second opinion on the fact that owner financing is much faster than taking a loan from a bank. The required formalities to make you the owner of the land will take time less than 2 weeks. There is no need for any reviewers or underwriter to approve the deal. This makes owner financed land a luring offer for many people who want to buy the land without wasting time.

Cons Or Disadvantage To The Buyer
Getting land through owner finance is easy but has some cons too.

1. High Interest

The interest charged by the owner is quite high. It is 1 to 4 percent more than all banks and lenders. If you have money to pay in bulk then it is a goo option, but if you are willing to pay in installments, the rate of interest may even go up.

2. Fewer Choices

You cannot pick the land of your choice with owner financing land. It is a good option if you are looking for any land as an investment but if you want a land with particular features, you need to be lucky.

If you are looking for another way to get the land of your choice, you can contact TheLandSpot.com. Give us a call at 888-822-0729.

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