A Land Contract is often called "seller financing" instead of bank or mortgage company financing. Instead of the debt or note being with the bank or mortgage company, the debt or note is with the seller. Instead of the monthly house payment being made to the bank or mortgage company, the monthly house payment is made to the seller. That is why a Land Contact is frequently called seller financing instead of bank or mortgage company financing. The nice things about a Land contract are the flexibility it offers as it is whatever the buyer and seller agree on with respect to sales price, size of down payment and monthly payment amount. All of those things are very flexible so folks with good credit and good jobs/income or folks with less than good credit and modest incomes have the ability to buy a home  and stop forever throwing money away renting