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Ken D'Alessandro

Broker Associate

Seller Financing



                                   Seller Financing

Also known as a Land Contract or a contract for deed, is an installment payment agreement between a buyer and a seller in which the seller, instead of a bank, finances the purchase of a piece of real estate.

For all practical purposes, the buyer owns the property and has the right of :

Possession

Use of the property

Resale

Benefits to the Buyer:

No underwriter qualifying, although the seller could ask for a copy of the buyer's credit report.

Down Payment amount is negotiable.

Length of contract term, interest rate and payments are negotiable.

Low closing costs, there are no lender fees to pay.

Fast Closing.

Benefits to the seller:

Typically higher sales price.

Monthly income

Often a better rate of return than money market account.

A difference between a mortgage and a land contract is that the deed transfers to the buyer right away when buying with a mortgage.

With a land contract the deed does not transfer until all the payments have been made.