Yellow field in fall season
If you have bad credit or no credit, you might think that you can’t buy land in Texas. The good news is, you can. Owner-financing makes buying land with no credit a possibility.
Before you buy owner-financed land, it’s important to know what to expect to pay in interest. Keep reading to learn more about owner-financed interest rates in Texas from your Texas land developers at Santa Cruz Properties.
What Is Owner-Financing?
Owner-financing is a method for buying real estate in which the buyer takes on debt with the seller of the property rather than a traditional lender. In traditional real estate purchases, the buyer takes out a loan from a bank or other lender and uses that money to buy the home, meaning that they’re making a deal with both the seller and the lender. Owner-financing cuts out the middleman and lets buyers and sellers interact directly.
With owner financing, you won’t need to undergo a credit check or meet the high standards set by traditional lenders. This makes buying land more accessible for all.
What Does Your Interest Rate Mean for What You Owe?
The interest rate on your mortgage is the amount you’ll pay in addition to the total agreed-upon price of the home and is charged over time in exchange for your loan. Interest is the charge you face for borrowing money. The higher your interest rate, the more you’ll have to eventually pay for the home or property. Interest is paid off as a part of your standard monthly payment, meaning a part of your payment every month will go toward paying off your interest rather than paying off the principal of your loan.
Owner-Financed Interest Rates in Texas
So, what can you expect to pay for owner-financed interest rates in Texas? First, it’s important to note that owner-financed interest rates can vary widely and are set as a part of the sale agreement between the buyer and seller. This means that you will have some influence over the rate you pay.
In general, owner-financed interest rates in Texas tend to stay at around 8% or higher. This can be slightly higher than the rate set by traditional lenders. However, it’s important to remember the advantages of owner-financing that make this higher rate worth it. First of all, you won’t have to deal with a credit check or loan approval. You also can gain access to more favorable rates for other parts of the agreement, including a low down payment.
Buy Owner-Financed Land From Santa Cruz Properties
When it comes to buying owner-financed land in Texas, the interest rate you agree to will have a big impact on what you pay. Here at Santa Cruz Properties, we work with buyers to ensure that they can get favorable rates that meet their unique needs.
If you’re looking for owner-financed land for sale in Texas, you’ve come to the right place. Santa Cruz Properties has a selection of affordable Rio Grande Valley lots for sale, and we’ll set favorable rates for your purchase. Get in touch with our Texas land development team today to find the right property for you.
