What Are Some of the Advantages of Buying a Home on Contract for Deed?

Buying a home on a contract for sale can have some disadvantages, but there are also many advantages, especially if you have a poor credit history or no credit history at all. If you've had financial problems in the past, such as a foreclosure, bankruptcy or foreclosure, you probably won't qualify for a conventional mortgage. If you want to buy my home, you have few options. You could either enter into a lease option or purchase agreement, or come up with some other creative form of financing.

Before you consider the advantages of a purchase agreement, you should be aware of any associated disadvantages. We recommend that you consult with an experienced real estate agent who can help you understand all the pros and cons of buying a home based on a purchase agreement. 

In this article, we will focus on the advantages and give you some general tips and ideas on what to expect from a typical CD transaction.

So what are the benefits and why should you buy a home with a contract for sale?

• The ability to buy a home with a bad credit score or no credit score at all! If you have a bad credit score, no bank will lend you money, so your only option is to go with owner financing. Buying a property with a contract of sale is a perfect alternative.
  
  
• You can become a proud homeowner again! Let's face it - renting is dumb! You can't paint the walls the color you like, you can't have pets, you can't grill, you can't have a bonfire, and some landlords just drive a lot of people crazy.
  
  
• Build equity! Instead of spending money on rent, you can build equity in your own home.
  
  
• You almost don't have to qualify! You don't have to deal with lengthy applications, credit checks and approvals. However, some sellers will ask for proof of credit or rent - don't worry, they just want to get to know you a little better so they know where you stand financially. Remember, they're also taking a risk, so that's kind of common sense.
  
  
• It's a quick and easy deal! A land purchase agreement can literary be completed in a matter of days. As long as you coordinate with everyone involved, get the inspection done, and give the title company a day or two to verify title, you're good to go!
  
  
• There are no lender fees at closing! When you buy a home with a mortgage, there are lender fees, servicing fees, application fees, etc. With a land purchase agreement, there are only title company fees, nothing else.
  
  
• Opportunity for loan rehabilitation! Instead of renting for 5 years before you can buy a home again, you can buy a home now and continue to work on your credit.
  
  
• You will receive tax benefits! Deduct your interest, property taxes, insurance premiums, etc.
  
  
• You can improve the property and customize it to your needs! As long as the seller agrees with you, you can go wild. Add a porch, a sunroom, a sauna, a hot tub, and anything else you can think of. Don't be restricted by your lease, as you would be if you were renting. It's your property - enjoy being the owner!

Potential capital gains! When the market recovers and the value goes up - make money! If you bought the property when prices were low and the market starts to recover, in 5 years your property will be worth more than what you owe on it.