Buying A Home On Contract (Tested & Working)

The old Victorian on Maple Street didn’t have a "For Sale" sign in the yard. It had a weathered piece of plywood with "Land Contract – Inquire Within" scrawled in black Sharpie. For Elias and Sarah, that sign was a lifeline.

For the first time in seven years, Elias and Sarah breathed. The "Land Contract" sign was long gone, replaced by a house that finally, legally, belonged to the people who had been loving it all along.

Their contract was "amortized" over thirty years to keep payments low, but the entire remaining balance—roughly $210,000—was due in full at the end of year seven. The plan was always to refinance with a traditional bank once their credit improved and the house increased in value. buying a home on contract

The day of the "closing" wasn't at a fancy Title company office. It was back at Arthur’s kitchen table, though this time a lawyer sat between them.

Arthur didn’t want a bank involved any more than they did. "Banks are slow, and they don't care if the roof is slate or shingle," Arthur told them over lukewarm coffee. "I want the income, and you want the roof. Let’s cut out the middleman." The old Victorian on Maple Street didn’t have

The biggest hurdle, however, wasn’t the monthly payment; it was the .

The deal was simple on the surface: Elias and Sarah would pay Arthur a $15,000 down payment—every cent of their savings—and then pay him $1,800 a month for seven years. This included a 6% interest rate, which was higher than the banks, but for them, it was the only game in town. For the first time in seven years, Elias and Sarah breathed

The first two years were a whirlwind of sawdust and paint. Because it was a contract sale, there was no bank appraiser forcing them to fix the peeling lead paint or the cracked driveway before closing. Elias spent his weekends restoring the original mahogany wainscoting. Sarah planted a sprawling perennial garden.