Can a single woman on a land contract deal actually apply for a federal grant to buy this first home for me?

Posted on Dec 5, 2012 in HARP Refinance

federal home program
by U.S. Army Garrison Japan

Question by deemark1961: Can a single woman on a land contract deal actually apply for a federal grant to buy this first home for me?
I hear of federal funding programs but don’t know where to apply? Is this a good time to even apply for one?

Best answer:

Answer by Dances with Aardvarks
There are no federal grants for the purchase of a private residence. You can get an FHA loan though if the property is eligible and you meet the lending guidelines.

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One Comment

  1. It’s always a good time to apply for a grant, if you meet their criteria. However, you won’t get them to fund a land contract, unless possibly there’s an underlying mortgage, and your name is on it. Land contracts are risky. They are typically used when the present owner can’t sell any other way, because a bank won’t touch it.

    Why do you suppose that is? Because there’s too much risk, and no recourse to resell in a lot of cases, and they know that.

    You don’t have ANY ownership of property under a land contract, until it’s paid off, and the owner transfers a proper warranty deed to you. you have an ownership INTEREST however, and have some few legal rights IF you register this interest at your local county courthouse.

    Buying by land contract is actually quite risky, and shouldn’t be done, except as a last resort, and only IF you know and trust the person you are buying the property from. Make sure of course first that he actually owns it.

    That person you are buying from, can sell the place right out from under you, OR place a large mortgage on it. or he could die before you pay it off, and it could be tied up with his heirs for a long time. That all can leave you holding the bag at the end, and that’s not a good place to be.