If you are interested in purchasing a home on a Land Contract in Big Rapids or the surrounding Mecosta County area, there are investors who are interested in selling homes this way.
It used to be, you needed approximately 10% down payment to buy on a land contract. Right now, if you purchase before next April 30th, there may be investors willing to sell you a home on land contract with very little down initially.
Because of the Homebuyer Tax Credit, some investors will write into the contract that you owe them a balloon payment on a specific date, when it is expected that you will have your Tax Credit in hand.
If you qualify, the tax credit is 10% up to $8,000 for first time homebuyers, and up to $6500 for those who lived in a primary residence for 5 of the last 8 years.
Primarily this works for homes in the $60,000 to 80,000 price bracket, as investors want to make money when they do this. (They are not going to sell you a $25,000 home on a land contract).
Typically, they are purchasing a foreclosed home for much less, fixing it up to a nice liveable condition, and charging 7 to 8 % interest on the land contract.
You could become a homeowner... possibly for less than your rent per month!
The first criteria for a Land Contract investor is that you must have steady income. Secondly, for this type of Land Contract, you must also be able to qualify for the Homebuyer Tax Credit.
Most investors will have a tax person check out your credit, which doesn't have to be perfect, and your qualification for a tax credit. Some allow bankruptcies, foreclosures, divorces, and medical financial difficulties if you typically pay your bills.
It's worth checking into if you want to become a homeowner but cannot obtain traditional financing for a home!
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