Understanding the Benefits of a Contract for Deed in Kentucky
If you’ve ever read the Budget Socialite Lifestyle Blog, you know that Penelope is the Queen of making the most of limited real estate opportunities. If you’re one of the fortunate few on the reader list, you’ve probably picked up a few tricks to make your assets work for you while keeping your checkbook balanced. One of the biggest money-saving moves you can make is a comprehensive approach to contract for deed arrangements in the state of Kentucky. The basic idea is a legal real estate equality kind of deal – instead of making a huge down payment on a mortgage that you’ll be paying for the next 15 or 30 years, you simply agree to pay for the full property value over time. If you stick to your budget, you’ll end up with your own Kentucky property without breaking the bank. Is this too good to be true? Hardly. Contracts for deed are catching on in Kentucky, allowing penny-pinching owners to enjoy the luxuries of property ownership without checking their bank balance.
For those of you hanging out on the fence, it’s time to jump and see how much of a positive impact financially-savvy real estate habits can have on your daily lifestyle choices. Turns out, it’s a lot. A contract for deed or a land contract is basically a legal agreement between you and the person selling you the land that outlines who will take possession of the land after so many payments and if the land is kept in good condition during that time. Let’s break it down a little further – so the contact for deed is a legally binding contract. You’ll be on the hook for the full price of the land and all taxes and maintenance fees in the meantime like a normal home buyer. However, instead of taking out a mortgage for a piece of property that you might not even like after two or three years, you have the option to negotiate your payment structure over time. It’s ideal for nailing down the ultimate cost and figuring out if the house is really worth the price of admission.
Contracts for deed aren’t much different from regular mortgages, but they do have some important distinctions. For starters, you’re not eligible for government-backed loans on a contract for deed – if you’re sick of government stipulations on your first home-buying purchase, a contract for deed is ideal. You’ll also avoid the additional closing costs that come with a mortgage. As with any traditional mortgage loan, make sure that you read the fine print to understand the legal ramifications of a contract for deed.
How do contracts for deed compare to other ways of obtaining property? We’ve rounded up a few typical mortgage or land deed options to show how a contract for deed stacks up. This is one of the biggest advantages of a contract for deed in the state of Kentucky. For more state-specific information, you’ll want to check out the State Library of Kentucky’s Contract for Deed Page, which outlines some of the basics. Here are a few contract for deed advantages you can expect when buying a property in the Bluegrass State.
While finances are always an important consideration for contract for deed opportunities (after all, it’s the best way Penelope can afford more shoes), there are also social perks to owning a contract for deed and using your savings to fund your other goals. Here are a few lifestyle benefits you can expect from entering a contract for deed. Budget Socialite, for all of her many talents, hasn’t met too many people who can turn down savings. Here are just a few ways it can work in your favor financially.
Like any other mortgage agreement or statement of property ownership, it’s not that simple – you’ve got to dig a little deeper to find what benefits the contract for deed can provide in Kentucky. There are a few potential pitfalls, so you’ll want to familiarize yourself with all of the details before you sign anything. Here are a few pitfalls and how to avoid them – contracts for deed aren’t necessarily the cheapest or most flexible option, but they can be the least hassleful. Here are a few reasons to try a contract for deed on your next Kentucky property purchase.
Like any other kind of agreement, contract for deeds has a few legal issues to consider. Penelope’s always seeking knowledge, and you can find some of the most need-to-know details about your contract for deed with the following FAQs. Here are another few tips from real buyers who have made contracts for deed work in Kentucky. They still maintained their super cool, socialite lifestyle while saving up for better homes and neighborhoods – all without making it too complicated. Here’s how they did it.
And that’s a wrap – while you won’t get everything on this list, it can help to know all of the financial savvy details of real estate deals to make more informed decisions when looking for your next property. Instead of jumping into an overpromising mortgage deal, do yourself the favor of looking into a contract for deed.