Why Choose Owner Financed Land?


Banks usually will not lend buyers money for vacant land where you can build your own dream home, or you may not be eligible for a traditional mortgage. What this means is you will need to investigate an alternative if buying vacant land is something that you want to do. This is where owner-financed land comes into play. 

Before You Buy

Here is what you need to know before you investigate buying owner-financed land. The owner may request a credit check and background check. If a credit check is something you want to avoid because it may hurt your credit score or you have poor credit, then check with the landowner. They may be willing to let you submit references and employment history instead of doing a credit check. 

How Owner Financing Works

The landowner does not give you the money as a bank would. Instead, the seller will extend enough credit to you to purchase the land. The buyer signs a promissory note to the seller that has the terms of the loan agreement. This includes the interest rate, repayment schedule, and consequences of defaulting on the financing. While you are buying, the owner will likely keep the title to the land until it is paid off. The terms are usually short, unlike typical mortgages that can last 15 to 30 years. 

The Pros of Owner Financing

The fees associated with the financing will be much cheaper. Since banks have fees that include origination fees, processing fees, administration fees, and loan or discount points when you cut the bank out of the financing all these fees are eliminated, and you cut down on what you are paying. 

The closing on the land will be much faster. Since you do not have to wait for a bank loan officer, underwriter, and legal department to process and approve the application, you will be done much faster with owner-financed land. Owner financing takes the middleman out of the equation, leaving only the buyer and seller who are likely to want to move through the process as fast as possible. 

Down payments are flexible. Since you aren’t working with a bank, there are no minimums. That means you can negotiate with the owner about how much of your money you want to put towards your down payment. 

Owner-financed land also gives you the ability to buy adjoining tracts of land at the same time while having an affordable payment. You will not have to worry about trying to get approved for a big loan from a bank or multiple loans from many lenders to cover the costs of adjoining tracts of land.


Are you ready to look at owner-financed land? Contact Hurdle Land and Realty, Inc. today for information on our listings and how you can become a landowner yourself with just $295 down!