Seller financing – how it works
Seller financing is making a comeback! Pre-1980’s, seller financing was about the only way people bought property. There was no such thing as a home equity loan, and banks typically wanted 50% down payments for land purchases. Thus, owners usually provided the financing vehicle for purchasers via a Contract for Deed (in Minnesota) or Land Contract (in other areas).
In a Contract for Deed:
1) the buyer makes a down payment to the seller,
2) the buyer and seller enter into a contract for the deed to the property (thus the term Contract for Deed) on terms agreeable to the parties, and
3) when the terms of the contract are fulfilled, the seller executes a deed transferring ownership of the property to the buyer.
The professionals at LandRadar.com have been in the real estate market for over 30 years and are familiar with all types of financing, including seller-financed Contract for Deed purchases. Visit Land Financing in our Toolbox for financing options and Contact Us to answer your questions or point you in the right direction.