Difference between land contract and owner financing

[David Rutledge]

Hi Everyone,

I have been searching for properties that come with seller/owner financing for a while now and I have just had an offer accepted on one. The property will be sold using a land contract.

I am never purcahsed a property using anything other conventional financing before so I am a little clueless on all this. I was hoping someone may be able to help me understand the difference between owner financing and a land contract?

Is there anything specfic I should be aware of when purcahing a property on a land contract at all?

Thanks so much.

David

[Cody L.]

First, Owner financing is 100% the same as bank financing. It's just the seller is the lender vs a bank.

Land contract means you have to pay per a contract or you don't get title to the property. It allows seller to get the property back easier if you don't pay (but doesn't offer the seller the amount of protection that some think)