The personal website of Chris Coyier

Land Contract

I signed the papers and wired the down payment to buy my first home yesterday. I don’t actually own it yet though. The papers were for a 2-year land contract deal. The current owner still technically owns it for two more years. At the end of that two years, I owe him the rest of that money. The idea is that I’d get a loan then to pay that, then I’d have a traditional mortgage. If anything goes wrong, I lose everything I have vested in it (bad).

I would have gotten the mortgage now if I could have, but banks basically laughed at me since I don’t have very much time being self-ish employed. It was surprising to me. I have no debt, great credit, a large down payment, pretty good income, and no dice on a loan. I’ve even been a member of the credit union for about 20 years! Oh well.

My lofty goal is to have the money to pay off the house before I need to get the mortgage, but that’s extremely wishful thinking.