Owner financed land lets you buy a Texas tract by making payments to the seller instead of a bank. The seller acts as the lender for part of the price, and the buyer pays it back over time under terms the two sides agree on.
It can open the door for buyers who want land but would rather not go through a traditional loan, and it can help sellers reach more buyers. Both sides also take on responsibilities that a bank would normally handle. This guide explains how owner financing is set up in Texas, what to ask before you sign, and which of our listings offer it.
Available Now
Owner Financed Land for Sale From Mike & Cody’s
These listings were offered with owner or seller financing as of November 2026. Terms are set by each seller, so ask us for current details.
| Property | County | Acres | Price | Financing |
|---|---|---|---|---|
| McCoy 19.58 Acres | Atascosa | 19.58± | $360,000 | Seller financing available |
| Nockenut Woods Tract Four | Medina | 11.08± | $140,000 | Owner financing available |
| Siestedero Branch Creek Tract | Medina | 11.01± | $162,250 | Owner financing, or $6,000 credited at closing |
Prices and financing as of November 2026 and subject to change. Check each listing page or call (833) 697-2624.
The Basics
What Is Owner Financing?
In an owner financed sale, also called seller financing, the buyer makes a down payment and signs a promissory note for the rest of the price. Instead of borrowing from a bank, the buyer pays the seller in installments, with interest, until the note is paid off.
Owner financing does not mean automatic approval or no credit check. Texas’s standard Seller Financing Addendum lets the seller ask for a credit report, income and employment verification, and financial statements, and lets the seller end the contract if it finds the buyer’s credit unacceptable, subject to the addendum’s conditions, notice requirements, and deadlines.11
The terms are negotiated, not set by a lender. Buyers and sellers usually agree on:
Down Payment
How much the buyer pays at closing. A larger down payment lowers the amount financed and the seller’s risk.
Interest Rate and Payment
The rate, the monthly or annual payment, and when payments are due.
Length and Payoff
How many years the note runs, whether a balloon payment is due early, and whether the buyer can pay it off sooner.
Read the Schedule
Balloon Payments: Amortization vs. Payoff Date
A balloon payment is a large, one-time payment due at the end of a loan’s term.9 It happens when the payments are calculated over a longer schedule than the note actually runs, so a balance is still owed on the final due date.
Illustration only. These figures are invented to explain the idea. They are not an offer, typical Texas terms, or terms for any of our listings.
Suppose a buyer pays $40,000 down on a $200,000 tract and finances $160,000:
| Hypothetical Structure | How Payments Are Calculated | What Happens at the End |
|---|---|---|
| Paid over 20 years, due in 20 years | Payments repay principal and interest over 20 years | The note is paid off if every payment is made |
| Paid over 20 years, due in 5 years | Same monthly payment as the 20-year schedule | The remaining balance comes due in year 5 |
Ask for a written amortization schedule that shows the balance owed on the final due date. Refinancing a balloon is a possibility, not a guarantee. The Consumer Financial Protection Bureau warns that if property values fall or your finances change, you might not be able to refinance when the payment comes due.9
Texas Structures
How Owner Financing Is Usually Set Up in Texas
There are two common ways to structure an owner financed land sale in Texas. The difference comes down to when the buyer receives title.
Title passes at closing
Deed With a Lien
The buyer receives the deed at closing, and the seller keeps a lien until the note is paid. The lien is typically created by a deed of trust securing the buyer’s promissory note, a vendor’s lien retained in the deed, or both.1
If the buyer defaults and the deed of trust includes a power of sale, the seller can generally foreclose without filing a lawsuit, subject to the loan documents and the required notices and procedures.2
Title passes after payoff
Contract for Deed
Also called an executory contract. The buyer makes payments while the seller generally retains legal title until the contract requirements are completed.3,10
When Texas’s executory contract rules apply, such as when the buyer will use the property mainly as a residence, the law adds strict requirements, including recording the contract within 30 days, giving the buyer an annual accounting statement each January, and making detailed disclosures.4,5,13
Get the structure right before you sign. Contract for deed rules in Texas are detailed, including notice and cure rights for a buyer who falls behind.3 A Texas real estate attorney or title company can recommend the right structure and prepare the documents.
Payments, records, and payoff. Agree in writing on who receives payments, sends account statements, and handles any escrow for taxes and insurance. A third-party loan servicer can manage this for a fee. Both sides should keep the signed documents and a full payment history, and when the note is paid off, the seller should sign a release of lien so it can be recorded and the title is cleared.1
Compare Your Options
Owner Financing vs. a Bank or Land Loan
Owner financing is not always better or worse than a loan. It is different. Here is how the two usually compare:
| Question | Owner Financing | Bank or Land Loan |
|---|---|---|
| Who approves the buyer? | The seller | The lender, using its own guidelines |
| How are terms set? | Negotiated between buyer and seller | Set by the lender’s loan program |
| Who receives payments? | The seller | The lender |
| When does the seller get paid? | Over time, through the note | At closing, from the loan proceeds |
| What if payments stop? | The seller enforces the note and lien | The lender enforces the loan |
For Buyers
What to Ask Before You Buy Owner Financed Land
A good owner financing deal is clear on paper before anyone signs. Ask about:
- The full terms. Down payment, interest rate, monthly payment, loan length, late fees, and any balloon payment.
- Prepayment. Whether you can pay the note off early or refinance with a lender later without a penalty.
- Title. Whether you receive the deed at closing or only after the final payment, and how the documents will be recorded.
- Title insurance and a survey. Whether they are included, so you know what you are buying and where the boundaries are.
- Existing liens. Whether the seller still owes a mortgage on the land, and how that loan will be handled at closing.
- Total ownership costs. Property taxes, insurance, and the cost of any water, power, septic, or driveway work you need, on top of the land payment. See our total cost example.
- Default. What happens if you miss a payment, and how much notice you will receive.
Before you commit, also review access, water, utilities, and restrictions the same way you would with any land purchase. Our guide to road frontage and driveway access covers the access questions, and our guide to Texas land prices by region can help you judge the price.
For Sellers
Should You Offer Owner Financing on Your Land?
Offering owner financing can make your land easier to sell, but you take on the role of the lender. Weigh both sides:
Possible Benefits
- Reach buyers who would rather not use a bank or land loan
- Earn interest on the amount you finance
- Possibly spread your taxable gain over time. With an installment sale, you generally report part of the gain as each payment is received.8
Risks and Responsibilities
- You are paid over time instead of at closing
- If the buyer stops paying, you may need to foreclose or follow notice and cure rules
- The note must charge adequate interest. If it does not, the IRS can treat part of the principal as interest.7
- Licensing rules can apply to some residential seller-financed loans6
Texas regulates people who make residential mortgage loans. The Texas Department of Savings and Mortgage Lending explains an exemption for an owner of residential real estate who makes no more than three residential mortgage loans to purchasers in any 12-month period, and it notes that loans made for business, commercial, or investment purposes are not residential mortgage loans. Vacant land is not automatically outside these rules. Texas defines residential real estate to include property on which a dwelling is constructed or intended to be constructed, so a buyer’s plan to build a home can matter.12 If you still owe on the property, a wrap-around arrangement has its own licensing rules.6 Federal rules are separate. Qualifying for a Texas licensing exemption does not automatically satisfy federal requirements for seller-financed loans secured by a home, which have their own conditions, such as how many properties the seller finances and how the loan is repaid.14 Ask a Texas real estate attorney how these rules apply to your sale, and talk with your CPA about taxes.
Not sure what your land would sell for? Our free ranch market analysis is a good first step before you decide on price and terms.
FAQ
Frequently Asked Questions About Owner Financed Land in Texas
How does owner financing work in Texas?
The seller acts as the lender for part of the price. The buyer makes a down payment, signs a promissory note, and pays the seller over time. In many land sales the buyer receives the deed at closing and the seller keeps a lien, usually secured by a deed of trust, until the note is paid.
Is owner financing legal in Texas?
Yes, but it comes with rules. Contracts for deed on property used as the buyer’s residence have strict disclosure, recording, and notice requirements, and Texas licensing rules can apply to some residential seller-financed loans. Have a Texas real estate attorney or title company prepare the documents.
What is a contract for deed?
A contract for deed, also called an executory contract, lets a buyer pay the seller over time while the seller generally retains legal title until the contract requirements are completed.
How much is the down payment on owner financed land?
There is no set amount. The down payment, interest rate, monthly payment, and loan length are negotiated between the buyer and the seller, so terms vary from one property to the next.
Does owner financing mean no credit check?
No. A seller may ask for a credit report, income verification, and other financial information before agreeing. Texas’s standard Seller Financing Addendum provides for this credit review and lets the seller end the contract if the buyer’s credit is unacceptable, subject to the addendum’s conditions, notice requirements, and deadlines.
What happens if a buyer misses payments?
It depends on how the sale was set up. With a deed of trust that includes a power of sale, the seller can usually foreclose without filing a lawsuit. When Texas’s executory contract rules apply to a contract for deed, the seller must give written notice and a 30- or 60-day period to catch up. The longer period generally applies once the buyer has paid 40 percent or more of the price, made the equivalent of 48 monthly payments, or the contract was recorded.
Do I need an attorney for owner financing?
It is strongly recommended for both sides. A Texas real estate attorney or title company can prepare the note, deed, and lien documents, and a CPA can explain how installment payments affect the seller’s taxes.
Does Mike & Cody’s Texas Ranch Sales have owner financed land for sale?
Yes. As of November 2026, McCoy 19.58 Acres in Atascosa County, Nockenut Woods Tract Four, and Siestedero Branch Creek Tract in Medina County are offered with owner or seller financing. Terms are set by each seller, so call (833) 697-2624 for current details.
Buying or Selling?
Find Owner Financed Land in Texas
Ask us about financing terms on our current listings, or talk with us about whether offering owner financing makes sense for your land.
Sources
Sources and Further Reading
Sources checked November 5, 2026. Numbers in the article link to the matching source below.
- Texas Real Estate Research Center. Lien Release, by Judon Fambrough. Tierra Grande, Publication 672
- Texas State Law Library. Foreclosure: General Information
- TexasLawHelp.org. Contract for Deed
- TexasLawHelp.org. Executory Contracts and Lease to Own Real Estate
- Texas Property Code Section 5.076. Recording Requirements
- Texas Department of Savings and Mortgage Lending. Mortgage Origination FAQs
- Internal Revenue Service. Topic No. 705, Installment Sales
- Internal Revenue Service. Publication 537, Installment Sales
- Consumer Financial Protection Bureau. What Is a Balloon Payment? When Is One Allowed?
- Consumer Financial Protection Bureau. What Is a Contract for Deed?
- Texas Real Estate Commission. Seller Financing Addendum, Form 26-8
- Texas Finance Code Section 180.002. Definitions
- Texas Property Code Chapter 5, Subchapter D. Executory Contract for Conveyance
- Consumer Financial Protection Bureau. Regulation Z, Section 1026.36, Including Seller-Financer Provisions
This guide provides general information, not legal, tax, or financial advice. Have a Texas real estate attorney prepare or review owner financing documents, and talk with a CPA about tax questions.
