The Realtors who have answered this before me have given you some great advice. I'd like to add that you should have an attorney reviewing your contract. Depending on how the contract for purchase is drawn up, most buyers are nothing more than glorified tenants in a property until the deed is recorded in their name. Most sellers will require several thousand dollars to enter into a land contract with you, and will expect you to qualify for a mortgage within a certain specified window of time. You will be responsible for all maintenance and repairs, as well as taxes, in addition to your monthly payment to the seller. Until you qualify for a mortgage, many sellers do not record that deed in your name. This is often done because they can't truly sell the property to you unless it's owned free and clear by them. In other words, a property with a mortgage on it cannot be sold to you until the seller's mortgage is paid off. There are lots of horror stories out there now where people who thought they bought a home on land contract come to find the home is being foreclosed on because the seller did not continue to make the mortgage payments. You could be out your deposit, all of your monthly payments and any other money you put into the home.