Finding land for sale in Missouri by owner financing is a very quick way to secure your dream property. If the land you have found is for sale by owner, you will be able to work directly with the seller to discuss owner finance options.

As discussed previously, owner financing has many benefits for both the buyer and the seller.

It allows you to work with the seller to obtain a successful result for both parties.

The buyer has the opportunity to take the property off the market quickly and make sure they do not miss out on the land for sale.

The owner is able to secure a down payment and sell their land gradually over time.

If you have been thinking about moving to Missouri for a while, here are a few more great reasons to check out this great state!

land for sale by owner financing missouri

What happens after an owner finance deal is reached?

You and the seller will both sign paperwork that outlines the subject property, the purchase price, the terms you have agreed, the interest rate and the monthly payment.

The completion of the owner financed deal in Missouri usually occurs in one of 3 ways:

1) The down payment is made, then the agreed monthly payments occur for the term of the owner financed loan. Once the seller has received the agreed sale price in full, the new deed will be recorded in the buyer’s name at the county


2) The down payment is made, the buyer then secures traditional funding with a bank or lending institution. In some cases a bank will lend you the money for the land. In other cases, the bank will lend you the total funding for the home and land together. The buyer is able to complete early. The seller is paid in full by the bank/lending institution and the buyer continues their arrangement with the bank.


3) The down payment is made, the buyer starts their monthly payments. Sometimes buyer may elect to pay the seller in full early to get the title in their name. Often this is if they wish to start the building process, or wish to live on the property.

Typically with owner financing, you will not be able to live on the land until you have paid for the property in full. If you are seeking bank financing for a home, the bank will want to see that you own the real estate that the house is built on before they will lend you the money for the house.

Makes sense!

owner financing missouri

What can I do with a property during the owner financed term?

Firstly be sure to discuss your plans openly with the seller. The worst thing you can do is start building your dream home or your underground bunker or your fabulous ranchette only to find that it is not permitted and that you are in breach of your contract.

You may have to demolish everything and pay to have the land restored to the way it was before. Sometimes the owners will allow you to start doing basic work to the property like installing utilities or putting up fencing, or clearing the land.

Also be sure to check for any zoning restrictions with the county.

And check for any subdivision covenants if there are any.

Most sellers will allow you to get started to some extent with your project- just be sure to keep them informed and ensure you have the correct permissions. Until you have fully paid for the land, you do not have full rights to do whatever you choose.

Where can I find land for sale with owner financing?

Typically, to get a chance to obtain land with owner financing, you will need to find land for sale by owner. You can talk directly with the seller and make them an offer. Remember though, that the seller is not a bank. They will not be able to make similar terms as a bank. Do not expect your owner financed deal to be strung out over 20-30 years.

In many land sales, the owner is selling because they need the cash. Maybe they have an unexpected illness, or a family emergency or kids college fees. You may get 2-5 years, or you may be able to let them grant you a 2 year pay off term to give you time to arrange bank finance or allow you time to sell your boat, your trailer or your vacation home to raise the cash.

What type of properties can be owner financed?

Almost anything can be owner financed. Typical land for sale in Missouri that we have seen with owner financed terms include ranches, hunting properties, rural homes, tracts of undeveloped land and cabin properties.

How do I strike a good deal when owner financing land?

The best way to operate in any land deal is to think from the seller’s perspective. You know that their goal is to sell their land. You know that they would prefer to receive all the money upfront to keep things simple, clean and easy. If you, the buyer do not have all the money upfront to pay for the land for sale, the seller might be willing to delay receiving payments.

However, now they are at risk.

What happens if you stop paying?

What if you start using the land before you agreed to?

What if you start causing trouble for the seller with the county by violating zoning restrictions?

The seller is more likely to work with you and give you some flexibility in terms if they trust you. The best way to convey your trustworthiness? Talk to them. Be friendly, explain why you love the land, explain your plans and explain how quickly you will pay them back. 

If you have a good job or a successful business, let them know. 

When negotiating your position, the larger the down payment, you are able to come up with , the more likely the seller will trust you. You will have more skin in the game and it will help reduce their risk.

If you do not have a large down payment but can afford larger monthly payments, you may be able to negotiate this.

In general most sellers are willing to hear your proposal. If the seller has a proposed owner finance deal on their listing, many are still willing to engage in some willing room with you if you make a decent offer.

It is all about both getting what you want.

If you can find a way to make them feel secure, give them a non-complicated sale and ensure you are trustworthy, most sellers will be able to be flexible with you.

Should I owner finance my land purchase?

The answer is (of course!) that it depends. If you have the full cash price in cash -ready to go, you are in a strong position to negotiate a little discount off the asking price for a firm offer, quick sale, no complications.

If you do not quite have the full funds ready to go, owner financing is a smart way to make sure you can snap up your dream property when you find it and pay for it over time.

As always you must be responsible, and never commit to any purchase that you cannot afford. In most cases, if you stop paying, you will lose the land, plus all the money you have paid towards the property.

Now sellers do not wish to do this to good honest folk. No one is out to get you! As always communication is key. If, for example, you lost your job or something unexpected happens, do not bury your head in the sand! Simply let the seller know what has happened and see if they are willing to reduce the payments for a few weeks or a few months until you are back on your feet.

Be fair with the seller. If your agreement is full pay off in 2 years, you cannot expect them to hang around for 5 years until you feel like paying again. Communication is key to any transaction. 

Aim to have the seller paid in full as soon as possible.

If owner financing in Missouri appeals to you, there are certainly some deals around to be had. They do get snapped up quickly- as they are a super popular way to purchase land. Know what you are looking for in advance ad when you find it, move quickly!

Good luck and go get your land!

Published by Anne Samuel

Anne is a passionate land investor who loves spotting opportunities and helping new land investors get on the ladder and get their first acreage. When she is not out scouting for insanely awesome deals for you, she can be found either surfing, downhill mountain biking or practising her amateur chef skills.

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