Michigan programs
Land contract
A seller-financed purchase, common in Michigan, where the seller holds legal title until the buyer finishes paying — an alternative when bank financing is hard to get.
What does land contract mean?
A land contract is a Michigan tradition in which the seller finances the sale directly: you make payments to the seller, who keeps legal title until the contract is paid off, at which point title transfers. It can open a door when a conventional mortgage isn't available, and it's common in rural and northern Michigan. The risk is that you don't hold clear title up front, so protections matter — record the contract with the county register of deeds, understand the forfeiture terms, and have the title checked before signing, just as you would any financed purchase.
Common questions
What is a land contract in Michigan?
A seller-financed purchase where the seller keeps legal title until you finish paying, then transfers it. It's a common path when bank financing is hard to get.
What are the risks of a land contract?
You don't hold clear title up front. Record the contract with the county register of deeds, understand the forfeiture terms, and have the title checked before signing.
Can I refinance out of a land contract?
Often yes — once you've built a payment history and equity, a conventional or FHA refinance can pay off the seller and put the title in your name.
Related terms