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Iron Gate Realty, LLC

720 Island Park Drive Unit 101
Charleston, SC 29492
843-478-7875
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Land Contract

An alternative to a non-conforming loan is the use of a land contract, which is allowed in some states. A land contract is an agreement between a buyer and a seller, where the buyer agrees to make periodic payments to the seller. The title to the property only transfers to the land contract buyer on fulfillment of the land contract obligations.

A land contract can be helpful for those who need time to establish or improve their credit rating. There are only small closing costs, and payment can help establish a good mortgage payment record. This can help establish an overall good credit rating, and it is possible for the buyer to later refinance the land contract with a conforming loan.

On the other hand, there are risks associated with land contracts. Land contract purchases are not necessarily recorded in the public record, and there are no guarantees that the seller will be able to transfer a clear title to the buyer upon fulfillment of the land contract. There also is no lender assuring that the purchase price for the property is justified, and no inspection of the property’s condition.

Another alternative to a non-conforming loan is assuming the seller’s mortgage. By assuming a mortgage, if the mortgage is assumable, it is possible to save on closing costs, and may allow you to obtain a favorable interest rate.

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Iron Gate Realty
720 Island Park Drive
Charleston, SC 29492
Phone: 843-478-7875
Email: IronGateSales@gmail.com

Testimonials Page

Renee How can I thank you enough for the wonderful job you did for me in selling my home. You were highly recommended to me by a mutual professional acquaintance in Charleston. The job you did for me exceeded all my expectations. Your professional expertise was obvious every step of the way. Your knowledge of the Charleston real estate quickly earned my full confidence and respect and my faith in your never waivered throughout the entire process.
 “Poole” William A. Davis DMD


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