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Howard Hanna Professionals

Olean Office:
410 Wayne Street
Olean, NY 14760
Phone: (716) 372-1155
Fax: (716) 372-7057

Bradford Office:
30 Bolivar Drive
Bradford, PA 16701
Phone: (814) 362-7450
Fax: (814) 362-7451
Bradford Area Website

Smethport Office
104 Forest Ave
Smethport, PA 16749
Phone: (814) 887-7772
Fax: (814) 887-5560

Kane Office
30 Fraley Street
Kane, PA 16735
Phone: (814) 837-8540
Fax: (814) 837-8455

Email: dennispezzimenti@howardhanna.com

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Land Contract

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.

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Howard Hanna Professionals
Howard Hanna Professionals 410 Wayne Street
Olean, NY 14760
Phone: (716) 372-1155
Fax: (716) 372-7057
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