# Looking for Land Contract/Flexible Location



## countrymomto4 (Nov 6, 2008)

Hello everyone,

We have been looking for months without much success (but with some heartbreak and frustrations), so I thought we'd put out some feelers here. 

We're looking for a land contract property, at least 3 bedrooms and 1+acres (preferably at least 2). We have a decent chunk for a down payment, and are looking to keep monthly payments around 500-600 with no significant penalties for balloon payments or early pay-off. We have stable employment from home, so the job situation isn't a problem so long as we can get high speed internet. 

A mobile would be ok, as would a fixer as long as it is live-able and nothing too major. We need something rural and private, and are open to Wisconsin, Michigan, Missouri, Indiana, Illinois, West Virginia, and Kentucky (we home school and prefer low regulation states). 

Please let us know if you hear of anything!

Thanks


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## Nevada (Sep 9, 2004)

countrymomto4 said:


> We have a decent chunk for a down payment


Since you're looking for a 3-br home you are hardly looking for a land contract. You're looking for a home.

Depending on how big your "decent chunk" for a down payment is, you might consider buying outright, having an owner finance, or even get a conventional loan. Land contracts are pretty much considered a last resort.


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## Jerngen (May 22, 2006)

Nevada - In this part of the country a "Land Contract" *is* the homeowner privately financing the sale  That's how we bought our first house. 

CountryMom - I recommend watching Craigslist. I know I've seen a few land contract homes recently for the southwest Michigan area. Just be careful of the scam artists I see all over on Craigslist lately. 
Another thought..... there are a few companies in Missouri that sell land financed through them with no down payment. Sure they sell at a bit of a profit for them doing it.... but this way you can use your "decent chunk for a downpayment" and quickly throw up a small cabin. Then add on to it as finances allow until you have the three bedroom home you desire. 

Also your list of states caught my eye. WV isn't a low homeschool regulation state compared to many.... and if you look at the following map you'll see many more you can add to your list  
http://www.hslda.org/laws/default.asp

Good luck!


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## Nevada (Sep 9, 2004)

Jerngen said:


> Nevada - In this part of the country a "Land Contract" *is* the homeowner privately financing the sale  That's how we bought our first house.


Normally the distinction between a land contract sale and a regular real estate sale is the in the deed. In a land contract the buyer doesn't get the land deeded to him until the contract is satisfied, but the buyer still gets to use the land. In a regular sale the lender keeps a note on the property, but the land is deeded to the buyer right away when the sale is closed.

The problem with land contracts is that if the buyer stops paying on the land the buyer loses everything. In a a regular sale, if the property appreciated or principle was paid down, the buyer benefits when the property is sold.


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## Navotifarm (Dec 16, 2009)

What is the difference between land contract, rent or lease with option to buy and wrap-around mortgage? And which is best in this case and why?


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## Nevada (Sep 9, 2004)

Navotifarm said:


> What is the difference between land contract, rent or lease with option to buy and wrap-around mortgage? And which is best in this case and why?


A land contract is a contract to purchase a property with certain fixed conditions, but the buyer isn't normally deeded the property until the contract is satasifed.

A rent or lease with option to buy normally applies all or some of the rent payments to the purchase of the house, but the actual purchase price may not be specified in the rental agreement. Rent with option to buy is more of a rental feature than a realistic way to acquire property, since an actual purchase seldom results.

A wrap-around mortgage maintains a previous mortgage when a property is sold, usually to take advantage of a low interest rate.


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## Terri (May 10, 2002)

I live just a few miles from Missouri, and a LOT of property should be priced within your limits! 

Just as long as you stay away from the larger cities, that is. Homes cost more if people can easily commute to work.


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## palani (Jun 12, 2005)

Nevada said:


> the buyer isn't normally deeded the property until the contract is satasifed.


As in any contract the terms are negotiable. You might set a clause where the deed transfers when the property is half paid for and the seller accepts a note. This would protect the buyer from paying the entire contract just to find the seller has outstanding paper on the property.


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