Re: Buying land on contract

Posted by Kevin on October 15, 2003 at 09:55:48 from (66.138.215.4):

In Reply to: Buying land on contract posted by dhermesc on October 15, 2003 at 06:05:19:

I agree that owner financing generally is a good deal for both parties and works particularly well for buyers who do not have the downpayment that banks require. However this doesn't seem to be the case with you and the interest rate environment is so favorable that it probably makes more sense to try and get some sort of conventional financing. I think that in this case I would want to get control of the whole property because the seller seems a little unreasonable and from what you have said, the repayment terms will not work for you.

If you feel your bank is being unreasonable try and determine where they are coming from and why they are making the decisions that they are. They are in the business to manage risk and lend money. Often times they also are financial advisors that can really help you. Draw on their experience and ask questions. A good relationship with them cannot be underestimated. If you are dealing with a conventional bank they may not understand the risk so try the Farm Bank or a bank that specializes in ag lending. You may find that they are much more open to your request and able to help you structure a loan that fits your repayment ability. One of the down sides to conventional financing though is that there will be more closing costs associated with conventional financing - appraisal, doc fees, survey, title insurance, etc.

Just thought I would weigh in from a Texas banker's perspective and hope it all works out for you.

Kevin

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