Frequently Asked Questions

A contract for deed, also called a land contract, is a real estate agreement where the buyer purchases a property through a series of installment payments made directly to the seller, rather than through a bank.

The seller effectively finances the purchase and continues to hold legal title to the property until the buyer completes all payments outlined in the agreement. Once the final payment is made, the seller transfers the deed and the buyer becomes the legal owner.

Both. Our contract for deed program gives traditional buyers and investors a path to purchase property with a lower down payment and a more flexible qualification process than a traditional mortgage.

For homeowners, the program offers full access to the property — including the ability to renovate and decorate, subject to your agreement — with a lower barrier to entry and more flexible underwriting than a traditional lender. Instead of paying rent, your monthly payment goes toward purchasing the property under the terms of your agreement.

For investors, the program offers a way to acquire and renovate properties with a lower down payment and fewer fees than hard money loans. Depending on the property and local rental market, the monthly payment may leave room for positive cash flow — though outcomes vary and should be part of your own investment analysis. The structure also allows investors to pursue multiple properties over time.

You might be a good fit if:

1. You'd prefer a smaller down payment than the 20% typically required by an institutional mortgage lender

2. Your credit or debt-to-income ratio doesn't yet meet traditional lending requirements

3. You're self-employed or recently changed jobs

4. You'd rather your monthly payments go toward owning a home instead of paying rent

5. You want to grow your rental portfolio without tying up large amounts of capital in a single deal

Our contract for deed program offers a structured path to owning a home, without needing a traditional mortgage. Here's how the process works:

1. Pre-Qualification — Get started with a free, no-obligation pre-qualification. Share some basic details — your desired location, property condition, financial situation, and any other criteria — and we'll identify properties that may be a good fit. This step involves no hard credit inquiry, so it will not affect your credit score.

2. Property Tour — Once pre-qualified, we'll schedule a tour so you can see the property firsthand. We'll answer your questions about the property and the program to help you decide whether it's the right fit.

3. Secure Your Home — Ready to move forward? Submit your down payment, sign the contract for deed agreement, and transfer the property utilities into your name.

4. Move In — Get your keys and move in. Your rights and responsibilities as the occupant — including any renovations or changes to the property — are outlined in your signed agreement.

We aim to keep homeownership accessible with low down payment requirements.

The down payment is typically around $3,000, though the exact amount varies by property. This deposit is nonrefundable, is applied toward the purchase price, secures the property for you, and is due when you sign the agreement.

Keeping the down payment low removes one of the biggest barriers to getting started, while you work toward full ownership under the terms of your agreement.

Properties in our program go through a title search to confirm clear title before you purchase. Some properties may need updates or repairs, and buyers are free to make improvements to the home, subject to the terms of their agreement.

Before agreeing to purchase, buyers are responsible for inspecting the property and completing their own due diligence on any needed repairs or upgrades — we recommend a professional inspection so you know what you're taking on. Beyond your down payment, closing costs are covered on your behalf; any repair or renovation costs are separate and are the buyer's responsibility.

Your principal and interest payment is fixed for the life of your agreement — it's fully amortized with a set interest rate and term, so that portion won't change. Property taxes and insurance are included in your monthly payment and can vary.

We offer automatic ACH payments for convenience. We handle the setup before move-in, and your payment is deducted from your account each month, helping you stay on track and avoid missed or late payments.

Mallard Home Buyers pays the county property taxes on your behalf for the duration of the agreement, with the cost built into your monthly payment.

Buyers are encouraged to secure their own hazard insurance policy on the property. If you're unable to find or afford your own coverage, Mallard Home Buyers can purchase a policy on your behalf, with the cost added to your monthly payment. Note that insurance we purchase covers the structure of the home only — it does not cover your personal belongings or provide liability coverage. Regardless of who holds the hazard policy, we recommend all buyers carry a renters insurance policy to protect their personal property.

As with traditional homeownership, buyers are responsible for all preventative maintenance, repairs, capital expenditures, and property updates for the duration of the agreement. 

Payments are due on the 1st of each month. If a payment doesn't process by the 5th, a late fee applies as outlined in your agreement. If payment still hasn't been received by the 15th, we may begin default proceedings in accordance with your agreement and applicable state law, which can result in loss of the property and the payments made toward it, as detailed in your land contract.

Staying current on your payments is the best way to protect your investment in the home. We recommend reviewing the default and cancellation terms in your land contract carefully before signing.

All properties purchased under our contract for deed program are fully amortized over a 30-year term to keep monthly payments manageable. If you need to move out before the end of your agreement, you have two options: 

1. Pay off the remaining balance by selling or refinancing the property.

2. Voluntarily surrender the property in exchange for a $1,000 move-out credit. This ends your agreement without going through the formal default and forfeiture process. To qualify, you must have lived in the property at least 12 months, be current on all payments, and provide 30 days' notice.