Owner Financing for Land Purchases
How seller-financed land deals work and what to put in writing.
How it works
In an owner-financed deal, the seller acts as the lender: the buyer makes a down payment and pays the balance over time directly to the seller, usually secured by a note and mortgage or a land contract, depending on the state.
Why sellers offer it
Owner financing widens the buyer pool for land that's harder to finance conventionally, and it can generate ongoing interest income for the seller instead of a single lump sum.
What buyers should insist on
Get the terms in a written, recorded agreement: interest rate, payment schedule, default terms, and what happens to payments already made if the buyer defaults. A real estate attorney should review the agreement before signing.
Ready to talk through your situation?
Get Started