Communities that were developed on a land-lease program were designed to offer affordable housing for people that could not afford to purchase property. Normally the property is under a long-term lease of 99 years, and although you do not purchase your part it’s yours to use only within the details of the community property trust regulations. You can purchase a land-lease home much because you would a normal home.
Visit your local lending institution and get pre-approved for funding. Since banks will generally use the value of their property as collateral, they’ll think twice as approving one without some method of protecting their investment. Look for other kinds of collateral like a good down payment, the home of a cosigner or a credit line. Needless to say, your credit score is going to be a major influence on this type of conclusion, so take care to keep your score very high.
Get a good realtor that will work for you in negotiating the sale of this land-lease home you wish to purchase. Make sure that it is someone with whom you are comfortable enough to be able to disagree without personal crime. As your agent she’s required to submit your fantasies to the proprietor, but as a professional she’s expertise in real estate transactions: you should take her advice into consideration when making a determination.
Look over the home thoroughly after scheduling an appointment via your agent with the seller, and request to have a home inspector look through the place. You may choose to cover this all on your own or include it within the price negotiation when you come to the table. This is a significant step in purchasing a home whether or not the property is leased.
Look around the area. Since the land-lease plan is intended to make housing available to individuals who otherwise could not buy, don’t expect posh neighbors, but insist on a safe area where homeowners maintain their properties satisfactorily.
Read over the community trust’s regulations and requirements prior to making any offers. You will be legally bound to abide with these requirements and must know just what they do not allow. As an example, they might prohibit boat parking in the driveway, although the property is near water. Others might ask that you take part in a neighborhood watch program. Just be sure you understand what you are getting into.
Negotiate a purchase price by submitting an offer for a land-lease home through your realtor. The price should be a lot lower compared to comparable homes in the region. Do not be discouraged if at first your offer is rejected–it is part of this negotiating procedure. Simply respond with a adjusted offer.
Arrange to visit the closing with the seller after finding out if your bank agrees to offer you a mortgage. Your realtor will walk you through every step your condition requires. After all the files are signed (and there will be a good deal of them), the house will be yours to utilize or sell and the property will be yours to utilize, but not sell.