Installment land contracts advantage for Buyers:
-bank issues high interest rates
- seller can agree to finance the purchase at a below-market interest rate, making the
purchase more affordable
- ability to avoid the closing and mortgage lending fees charged by banks
- a buyer cannot qualify for a loan from the institutional lender (ex. buyer has inadequate
down payment but has poor credit history)
- takes possession is delivered upon the execution and delivery of the agreement rather
than at the closing
Advantages for Sellers:
- able to sell the property more quickly and for money than if he insisted on being
paid in full at the closing
- tax breaks