Contract for Deed

A contract for deed (also called a land contract) is a way to buy a house without using a bank loan. It’s usually used when the buyer doesn’t have enough money for a big down payment or doesn’t have strong credit yet.The buyer and seller agree on a price. The buyer makes a small down payment. The buyer makes monthly payments to the seller (not a bank). The payments include principal and interest. The buyer moves into the house right away and lives there like an owner.Who owns what (important part)The buyer gets equitable title. This means the buyer has the right to live in the home and gets homestead protection. The seller keeps legal title. This means the seller’s name stays on the deed until the loan is fully paid.