If you are wondering how to buy land with bad credit, you have come to the right place. Though buying land with bad credit can be difficult it can be done. There are a number of strategies that could be used to buy land with bad credit, but most of them require money. One way would be to simply buy the land with cash, another would be to come up with a huge down payment, and yet another would be to clean up the dings on your credit report and build credit. However, if you want to learn how to buy land with bad credit and don't have a lot of cash, the most likely method is through a land contract which is also known as a contract for deed.
- Find the land that you want. The first step buy land with bad credit using a land contract is to find land and an owner that is willing to accept a land contract. When real estate is selling well this can be difficult, but when the market is rough there will be more choices. You can search for land to buy through a land contract with or without a real estate agent.
Come to terms. Once you have found land that you want to buy you will need to work out a down payment and a monthly payment with the owner. One good point of a land contract for those wanting to buy land with bad credit is that the down payment is often quite reasonable. Some sellers will accept a surprisingly low down payment and at times none at all.
Does the seller really own it? The next step to buy land with bad credit using a land contract is one that many people skip but is of great importance for a buyer. Just as with any land purchase a title search will be needed to assure that the land is owned free and clear by the seller. It would be wise for the buyer to consider title insurance as well.
- Make sure it is legal. The land contract will need to be made into a written contract. The buyer should retain an attorney to draw up the documents or at least review them to assure that the contract is valid and enforceable. The attorney can also provide information on recording the land contract and other legal specifics in the buyer’s jurisdiction.