Buying a home on land contract in Michigan is often a route those with a troubled credit history will explore. To have the desire to buy a home, and then have the disappointment of having a poor credit history which results in a denial from a lender is not often easy to experience.
Buying a home on land contract in Michigan
is often sought as an alternative to taking to the time to repair ones credit in order to receive lender financing. What a buyer must realize in buying a home on land contract in Michigan is that one can work with a seller in most cases with the poor credit history, but one must be able to demonstrate strengths in other areas in order to have the seller serious consider you as a candidate.
For one, you must be able to demonstrate income. This income is usually in the form of money earned from work, but can be other sources such as a pension, structured settlement or in some cases government assistance.
However, with government assistance you most likely will be required to show evidence of this payment program, and length of time you will be receiving it, as a land contract is generally a long term commitment and short term government assistance alone is not enough to substantiate a stable and reliable income source.
Therefore, as with any income, one should also expect to not only demonstrate income, but length of employment, and stability of the income line. Buying a home on land contract in Michigan also requires one put a down payment. This can vary, but most sellers I work with as a Realtor I encourage to try to get at least 10% of the purchase price, and in some cases more, depending on the sales price.
The reason for this is it makes the buyer come forth with a commitment to the long term purchase of the home, and a buyer who puts down a large down payment is less likely to default on the contract down the road. So essentially anyone interested in buying a home on land contract in Michigan should realize that the lower a down payment, the more risk the seller is taking on, and the higher the down payment, the less risk there is for the seller. So, one way to overcome a poor credit history is to offer the seller a sizeable down payment along with demonstrating ones income sources.
For more information on buying a home with a land contract, contact me at: 269-441-8182 directly or through my website at: www.michaeldelaware.com. One can also gain more information on the subject of Land Contracts by downloading my eBooks in Kindle format now available on Amazon: ‘Understanding Land Contract Homes: In Pursuit of the American Dream‘ and ‘Land Contract Homes for Investors’.