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Contract For Deed VS Owner Financing What's The Difference

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Contract for Deed VS Owner Financing What's the Difference.....many times I get asked this question and it is a tricky one to answer. Contract for deed or what's known as a land contract is technically a form of owner financing, however it is thought of separately when we talk about and look at the term compared to normal owner financing as how many know it.

Contract for deed is similar to normal owner financing or also called seller financing because you are selling the house usually with a down payment and the balance paid monthly.

The big difference between contract for deed and owner financing is when the deed transfers. In traditional owner financing as we know it the deed transfers at closing. When you look at contract for deed the deed will not transfer until the last payment has been made to the original seller by the borrower.

So contract for deed vs owner financing what's the difference is a video pointing out the difference between the two strategies is when the deed transfers.

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