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.
"Michelle helped my husband and me through our home purchase in Sun City Lincoln Hills with total professional guidance and support. She listened to our concerns and needs for this purchase and found us our perfect home. Michelle, with the help of Nick, are the very best REAL ESTATE PROFESSIONALS we could ever have imagined finding. We both are truly grateful for their friendship and our positive home buying experience."Bernard and Anne B.
"Our experience when selling our home was very pleasant. Michelle was knowledgeable and well prepared and patient. She was very much appreciated!"Bob and Carmelina
"You were really fantastic to work with and we wish you and your son only the best. If you are ever in the Boise area, please come and visit." Tom and Paulette M.
"Susan and I went out to have a celebratory dinner and over drinks we both agreed: You are the greatest!!" Gary and Susan J.
"Michelle is extremely professional and well prepared. At my first meeting with Michelle to sell my Mother's home, she came prepared with marketing materials, information about herself, the current market conditions and details about my Mother's home. She provided advice as to how best sell this house and had all the trades people we would need to get everything done to sell the house for the best possible price. After the estate sale, she made all the arrangements with the trades people and the photographer before listing the house. The house was listed and that weekend, Michelle had a Open House on both Saturday and Sunday. 22 days later, we closed escrow!!! Michelle was a pleasure to work with. I will not hesitate to use Michelle for any future real estate needs nor to recommend her to anyone who may need a Realtor who really knows the Sun City Lincoln Hills real estate market." Jerry and Kathryn R.
"I appreciated your professionalism and great timing in initiating the sale of my home. It was an easier process than I expected, and am pleased with the outcome. Thank you for your thoughtfulness."Beverly L.
"Michelle did a great job handling the sale of our home and purchase of another. She was on top of all the details every step of the way including all the paperwork!! Less stress for us, so appreciated!Ray and Arlene C.
"Michelle did a fantastic job in selling our mom’s Sun City home. We live out of the area and were not able to be present during the sale process. Michelle has an extensive network of contacts who were available to provide all the services we needed. All of them did a great job. As did Michelle. She sold the house on the first day. Thank you Michelle". Steve and Vivian C.
"Thank you for your level of professionalism that you showed during the sale of our home. You are a beautiful person and your caring helpfulness will be remembered with great appreciation."Steve and Kathy P.