Posted by Michael Morrongiello on October 22, 2003 at 00:03:39:
In Reply to: Advice on temporary owner financing posted by Theresa Manning on October 16, 2003 at 09:39:35:
Theresa:
A land lot that has improvements like water, sewer, electric either on the lot itself or to the lot line would be fine to consider owner financing the sale of.Typically what you should strive for is a large down payment from any prospective buyers. The other issues that will come into play are the overall credit profile of the buyer, their credit scores, employment, stability, and whether or not the Note repayment terms can be structure with a balloon payment or not.
Loan to value exposure levels on land type collateral is typically more conservative than improved properties so that is why a strong down payment is more to your benifit than not.
To your success,
Michael Morrongiello