It’s an attractive option if you have a non-traditional income or are rebuilding your credit, but it comes with distinct risks. Here is how to navigate the process safely. 1. Find a Seller-Financed Property
Usually higher than current market mortgage rates.
You are buying the house "as-is." You need to know if the roof is leaking or the foundation is cracked before you're legally committed.
This is where most buyers skip steps and get burned. Before signing:
Once signed, file this document with your County Recorder’s office. This "records" your interest in the property, preventing the seller from selling the house to someone else or taking out a new loan against it while you’re living there. 5. Plan for the "Refinance"
These sellers are often more flexible and open to creative financing.
Buying on contract can be a lifesaver for those locked out of traditional banking, but it places the burden of protection entirely on the buyer. Be sure to verify the title, record the deed, and always have an exit strategy for that final payment.
Real estate investors frequently use land contracts to move properties quickly.