Self Financed Land - The Why and How it Saves You Money and Stress

Why Buy Land?

Besides being an American dream, owning vacant land offers many other benefits. Much less expensive than developed land, buying property with no improvements puts property ownership within reach of more people. Vacant land is more flexible, as you don’t have to tear any existing structures down to build whatever you want (within building code reason, of course!) or settle for what is already there. The value of property increases over time, and land is a long-term, tangible asset that won’t wear out or depreciate. Nothing can be stolen, broken, worn out, or destroyed. Also, vacant land has less property tax, lower mortgage, and much less maintenance. With unimproved land, you invest in personal satisfaction first with pride of ownership and enjoyment of beautiful natural areas and opportunities, with financial return interests second as an added bonus.

Why Buy Self Financed Land?

In a land sale that is owner financed, or self financed, the buyer arranges to make monetary arrangements for the purchase directly through the seller instead of through a conventional lender or bank. This is a great option for buyers who are having trouble securing conventional financing, such as those whose situation has non-traditional sources of income or employment and don’t fit in neat little boxes. Strict lender guidelines with no allowances or flexibility don’t apply. With a self financing, a promissory note is signed, which is a financial and debt instrument that includes the interest rate being charged, repayment schedule, and consequences of default. Recording the warranty deed in your name will vary by state. Closing on the sale is much faster and involved much less frustration and stress, as you will not have to wait on a loan officer, legal department, and loan underwriter to make a decision on your loan and constantly supplying documents at every stage. Closing costs are also typically much less with no bank fees and typically no appraisal fee unless either party wishes. The downpayment amount may also be more flexible, as there are no bank or government mandated minimum amounts.

Other Benefits of Buying Self-Financed Land

You can build your credit score while enjoying ownership, not having to wait through the typically long and frustrating process before you can qualify for conventional financing and finally purchase your dream property. Equity in the property is built up much quicker, all while enjoying your land sooner. Rates and fees are much more reasonable and flexible to fit both the buyer and seller needs. Affordable monthly payments are possible and much more negotiable to comfortably fit your budget and achieve your goal of owning land.

Less stress and saving money are just the leading examples of why self-financed land is the right choice. Interested in owning land sooner than you think? Contact Hurdle Land & Realty today!