Underwriting guidelines have tightened such that many are finding it difficult to secure financing.  Many of these folks are gainfully employed, with money in the bank, yet can not secure the funds necessary to purchase.

Leasing or leasing to own may not be your answer.  Frustrated buyer, meet land contract.

A land contract is essentially where the property owner finances the purchase and holds the deed until the, "loan," is paid off.  An agreed-upon price is paid over an agreed-upon time, for agreed-upon terms. 

For instance, let's say the buyer agrees to pay $100,000 for a property with a $10,000 downpayment, $1,000 per month, at 7.5% interest and for a term of 3-years at which time the buyer must secure a mortgage and payoff the land contract balance.  At this time, the deed is then transferred to the buyer.  An amortization schedule is created so that the balance due is known at any given time.  Terms including insurance and property taxes are negotiated and accounted for in the land contract.

If you are having difficulty getting a mortgage approval, or feel that you may have difficulty, don't give up!  There is hope!

Please contact us for more information, as we would appreciate the opportunity to discuss your options and explain how the process works.

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Derek Bauer is an Associate Broker and Realtor® with Real Estate One, Michigan's Largest Real Estate company.  Derek is also the lead of the Derek Bauer's, "Door to Dreams Team."  As a Certified Distressed Property Expert, Derek is helping homeowners avoid, and even reverse, foreclosure.  Learn more at http://DoorToDreams.com.  Derek Bauer is licensed in Real Estate in the State of Michigan, is not an attorney, and can not and does not provide legal advice and/or counsel.