I'm excited to share that I've been on a journey to purchase my first house hack, and I've finally come across an intriguing property. The seller has proposed "Contract for Deed" financing, which appears to be a promising option since it offers a lower interest rate compared to conventional financing. However, as I read into the terms, I find myself unsure whether they are actually advantageous, as I'm new to this process. If any of you have experience with non-conventional financing, I would greatly appreciate your insight on these terms. Are they favorable for a potential buyer? Your advice would be invaluable to me, and I'm truly grateful in advance for any guidance you can provide. Thanks!

Summary of Proposed CFD Terms.

-All terms to follow the Dodd-Frank Wall Street Consumer Protection Act.
-The financial transaction is known as a, “Contract for Deed” transaction, wherein the Vendors retain the deed title until the property is fully paid by the Vendee.
-Fair pricing can be determined by both parties, simply based on comparable real estate, assessed capital improvements, etc. Everything is negotiable!
-6% APR 30-year fixed APR; minimum of 7-15-year term.
-Minimum 3.5%-5% money down.
-Vendor carries the principal and interest (PI) only. Debtor(s) pays the taxes and insurance (TI).
-Buyers pay taxes and insurance (TI) wherein the insurance remains on the existing policy of the owners, adding the debtor(s) as additional insured. Total for any mortgage is PITI.
-Mandatory annual inspection of the property to determine if such was being kept in habitable condition. If such conditions are unacceptable, the debtor(s) must comply to needed repairs or improvement or risk foreclosure.
-Owner will remain capable of refinancing for any reasonable purpose, and/or providing second mortgage esp. for capital improvements and repairs.
-All capital improvements esp. permitted jobs must be approved by the owner.
-The owner is offered first right of refusal if the debtor(s) wishes to sell, wherein it is believed that only the principle paid and capital improvements up to that date will be applied to the current value of the property.