“Good credit, bad credit, no credit, NO PROBLEM!” You hear and see this everywhere, but mostly at the questionable car lots that can be found in every town, city, and state across the country. For people who have trouble financial pasts, these lots are the only way they could own a car. If only that option were available for land.
Well, it is!
Now, we’re not here to discuss buying a car since our expertise lies with the more permanent type of investment: land ownership. And as such, we’re here to tell you that in spite of bad credit, you can become a land owner in Alabama without breaking the bank.
The Down Payment
When it comes to buying land with a less than stellar credit rating, the amount you pay each month as well as the length of the note can be improved by having an appropriate down payment. While it’s not impossible to buy land without a down payment, it will certainly help move things along in your favor. Consider the down payment like collateral when trying to secure a personal loan. The big difference here is that the down payment goes towards the principal of the cost of the land rather than something of value you would use to prove your worthiness for financing. The bigger your down payment, the less your credit score will even matter.
When driving around looking at real estate listings, have you considered how many homes for sale have a “For Sale By Owner” sign in front of them rather than one from a realtor? Does it make you think that it would be a less legitimate investment as compared to one brokered through a real estate company?
While there will always be pros and cons for both owner financing and going through a realtor and securing bank financing, the major pro for owner financing is that it provides the opportunity for land ownership to those with lower credit ratings. With owner financing, the seller is going to provide the credit to the buyer with the promise to pay them directly rather than a bank. As long as you cover yourself and have a detailed contract and deed.
The biggest point you should take from all of this is that whether or not you have spent years improving your credit score after bad decisions in your early financial years, the dream of owning your own piece of Alabama land isn’t impossible. There are plenty of plots of owner financed land in Alabama that are available for you to make your own, whether to build a farm or a sweet cottage surrounded by fields of wildflowers.
And we’re here to help you get that dream started. Give us a call whenever you’re ready.