Is Owner Financing A Good Option When Buying Land?
More and more, owner financing is a strategic option for buying land. In today’s blog, we’ll go over the benefits of owner financed land in the East Texas region.
What You Need To Know About Owner Financing
For many potential land buyers, this is a viable option that’s both available and attractive. Turning to a bank for financing is not always the best solution. For one thing, many banks are tightening their purse strings and not lending as much as they once did, or at the very least, they are opting for higher-qualified buyers.
This doesn’t mean you don’t have options! You can still buy land, but you may need to think outside of the box. Not that owner financing is a new concept in real estate; on the contrary, whether purchasing land or a home, owner financing has been around for a long time. It’s becoming more sought-after now as people discover the advantages of going this route.
- What is owner financing? It’s a viable alternative to using a bank loan to buy land. Instead of turning to the bank, the buyer makes payments directly to the seller through a pre-agreed upon payment plan, until the land is paid off. You may find it helpful to know that several different terms mean the same thing, so if you hear someone talking about owner financing, seller financing, or owner will carry, these terms refer to the same approach.
These are several of the benefits you’ll enjoy when you choose owner financing over getting a loan from the bank:
- More flexible terms are possible. From the length of your note to the dollar amount you put down at the beginning, there is room for negotiating with many of the terms of your contract.
- Faster closing process. Often, closing on owner financed land for sale can be simpler and quicker.
- Lower closing costs. In addition, many land buyers who go the owner financing route end up with fewer fees at closing.
- Higher chance of being approved. Especially attractive for anyone who’s been declined by a bank, owner financing can open doors!
Where To Begin
- We recommend starting with property searches to familiarize yourself with what’s available and how much land in East Texas costs. Next, figure out how much money you can allocate for a down payment. Once you’ve narrowed down some possibilities and figured out how much you need to finance, contact a reputable company to informally discuss costs and terms. Don’t sign a contract until you fully understand all the terms.
Explore The Owner Financed Land Option
Owning your own land in East Texas is exciting! It’s a great investment, which is why many individuals who want to diversify their portfolio opt for purchasing land. East Texas is beautiful, offering many affordable properties you can enjoy at your leisure while you hold on to your land as an investment.
If you’re ready to learn more about buying land in East Texas and going with the owner financing option, reach out to Texas Acres. We’ve been offering owner financed land since 2004, and we’re here to help you. Contact us today!