How To... in 33418>Question Details

Tray, Other/Just Looking in 33418

what is buying a house on contract?

Asked by Tray, 33418 Sun Dec 6, 2009

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That is a contract for deed. If a seller doesnt have a current mortgage on the property, sometimes they will consider doing this to bring in income. Some buyers are interested in doing this until they are able to get their own financing through a lender. The interest rates are usually higher so that makes your monthly payment higher than what it would be to go through a lender. Dont hesitate to contact me if you have any other questions

thank you

Daneen Jacquot, Broker/owner
South Dakota Real Estate Company
1211 Mount Rushmore Rd
Rapid City SD 57701
0 votes Thank Flag Link Wed Jan 19, 2011
What if the seller has other mortgages on the house, and if the house isn't up to city code such as wiring after two years of paying payments you find this out?
Flag Tue May 6, 2014
It is Seller financing - contract where the Seller is willing to accept monthly payments from the buyer while he holds the title until everything is paid off. It helps buyers who would not qualify for traditional mortgage, but interest is usually higher for the risk the Seller is taking. I started to see this type of sales in some cases of Land sales in our area (Acreage, Loxahatchee). Obviously this is option for Sellers who do not need cash right now and prefer montly income.
0 votes Thank Flag Link Wed Jan 19, 2011
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