How Owner Financing Works

Most rural land in this country sold this way until the 1980s. The seller carries the note. The buyer signs a recorded contract and pays monthly. The bank is not in the room.

How the deal flows

• Pick a parcel on the site. $100 reserves it.
• We email a purchase agreement with price, down payment, monthly, rate, and term.
• You sign electronically and pay the down payment — pick $500, $1,000, or $1,500 down, or $0 if you qualify for our educator and government program.
• Monthly payments begin. Deed transfers when the note is paid off, or earlier if the contract allows.

Why it works for vacant land

Banks rarely finance raw land. When they do, they want 25 to 35% down, full income docs, and a strong credit score. The cost of underwriting a small land loan often outruns their margin, so they pass. Owner financing fills the gap.

What you give up vs. a bank loan

• No institutional title vault, but you get a recorded contract filed with the county.
• Rate is fixed at 10% APR because the seller carries the default risk — slightly higher than a bank mortgage, far simpler underwriting.
• You usually cannot build on the parcel until the note is paid off.

What you keep

• No bank approval, no 30-day wait, no appraisal fee.
• Walk-the-parcel rights from day one.
• A monthly that does not move.
• A path to ownership that does not gate on a credit score.

Common questions

Is this a contract for deed or a mortgage?

Arkansas allows both. We use a recorded contract for sale with deed transfer at payoff. The contract is filed with the county clerk.

Can I pay extra to finish faster?

Yes. No prepayment penalty. Anything beyond the monthly goes straight to principal.

What if I miss a payment?

There is a grace period. We will call. We are a family operation that has been doing this for years. Foreclosure is not how we make money.