How Does Owner Financed Land Really Work?

Many of us dream of one day owning some land—to start a garden, build a house, acquire livestock or just enjoy the peace and quiet of nature.
 

When we start the process of actually buying the right piece of land, however, we might run into some roadblocks. Perhaps there are credit checks, exorbitant fees or contracts that extend decades into the future. If these roadblocks end up being dead ends, the land-ownership dream can come to an end.
 

Luckily, there are other ways to become the owner of a beautiful piece of land. And it’s through choosing owner-financed options.

How does owner-financing work? Let’s explore.

With Owner Financing, You Don’t Have to Go Through a Bank

When you choose owner-financing for your new land, you won’t have to deal with getting rigorous approval from a bank or lending institution.

Unlike banks, owner-financed options don’t require the extensive background checks or financial histories or multiple applications to get approved for a loan.

If you’re having trouble procuring the money you need to buy the land of your dreams, owner-financing might just get you the “yes” you’ve been waiting for.

Owner Financed Land Often Involves A Shorter Repayment Period

Not excited about the prospect of paying a loan off over a period of decades? Owner-financed options often come with much shorter terms than traditional loans with a bank.

Often, these repayment periods are five years or less, with a balloon payment due at the end of that five years. Typically, owners seek refinancing once they’ve begun paying back their loan, which will allow them to secure more favorable terms if they want to avoid the balloon.

What’s a balloon payment, you ask?

Well, the balloon payment—called such because it is considerably larger than the other standard payments throughout the term—is due at the end of the repayment period and is typically two-to-three times the size of a standard payment.

However, they can also be much larger, depending on the terms you agreed to.

Owner Financing Is a Faster Process than Traditional Bank Loans

If the long waits and never-ending approval process of traditional bank loans don’t appeal to you, owner-financed land offers a silver lining. The process of procuring owner-financed land is typically much shorter than going through a bank.

You won’t have to wait for underwriters or loan processors to approve anything. You can close quickly, and get started cultivating your new land.

Find Beautiful, Owner-Financed Land Today

Hurdle Land and Realty has been proudly offering owner-financed land for nearly 50 years.

When you buy with Hurdle, there’s never any closing costs or credit checks. The process is quick, painless and easy…all you have to do is find the lot of your dreams.

Peruse our current lots, or contact us today to learn more about our process!