What is an Installment Sale Purchase?
An installment sale, otherwise known as a "contract-for-deed", is a creative financing technique utilized in the purchase and sale of real estate. Because it involves "seller-financing", it effectively eliminates the need for the buyer to apply with a bank or mortgage company in order to get qualified for a mortgage loan. Here at Dennis J. Zisa & Associates, we specialize in this type of transaction. Because we deal with numerous investors and developers, we are in a position to list and maintain a constant inventory of homes where the sellers are willing to hold the financing, and accept the balance of their proceeds in monthly installments. This presents an invaluable opportunity (and in some cases the only chance) for home-ownership, when a prospective buyer has "problem credit", or is unable to sufficiently document his income. The installment sale buyer need only to come up with the required down payment, typically $4000 to $6000, depending on the home he selects. The balance on the installment contract is paid off in monthly, fixed rate payments, just like a mortgage.