Seller financing, also called owner financing, means the land seller acts as the lender. Instead of going through a bank, you sign a promissory note with the seller that outlines the loan amount, interest rate, payment schedule, and any security interest in the property. In northeast Arizona, this arrangement is especially common because many buyers are new to the area and may not have an established credit history. White Mountain Land has leveraged this model for decades, and **we've completed more than 100 land transactions in Navajo County** alone, proving the approach works for both parties. Payments are typically made monthly, and the deed is transferred only after the final payment, giving the seller a built‑in security while letting the buyer occupy the land immediately.
What are the typical terms offered by White Mountain Land?
Our standard owner‑financing package is designed to be as straightforward as possible. The interest rate is fixed at 10 % APR, which is disclosed up front and never changes during the life of the loan. Buyers can put down as little as 5 % of the purchase price—often $2,500 on a $50,000 parcel—so the upfront cost stays low. Monthly payments include principal, interest, and the property tax portion, so you receive one easy bill each month. We also provide a five‑day grace period before a late fee is assessed, and there is no balloon payment at the end of the term. The contract contains a due‑on‑sale clause, meaning the loan must be paid in full if you decide to sell the land before the note matures. For a complete look at our financing options, visit our owner‑financed land page.
Can I include property taxes in my monthly payment?
Yes. One of the biggest conveniences of our owner‑financing model is that we roll the estimated property tax into the monthly installment. Arizona property tax rates vary by county, but the Arizona Department of Revenue provides a clear breakdown for each jurisdiction. You can review the current rates for Navajo, Apache, and Gila counties on the official site — Arizona property tax info. By bundling taxes with principal and interest, you avoid the surprise of a separate tax bill each July and keep your budgeting simple. If the tax assessment changes, we adjust the next month’s payment accordingly, and you receive a notice before the adjustment takes effect.
What zoning and land‑use restrictions should I check in Navajo, Apache, and Gila counties?
Before you sign, it’s essential to verify that the parcel’s zoning aligns with your plans, whether that’s building a tiny home, establishing a hobby farm, or holding the land for future resale. In Navajo County, most rural tracts are zoned “R‑1 Residential‑Low Density,” which permits a single‑family dwelling and limited accessory structures. Apache County uses a “R‑2 Rural Residential” classification that often requires a minimum lot size of 10 acres for new construction. Gila County’s “A‑1 Agricultural” zones allow livestock, irrigation wells, and seasonal structures, but may impose setbacks from roads and water sources. The county planning departments provide GIS maps and zoning codes online, and you can request a zoning verification letter at no cost. Understanding these rules early prevents costly re‑permits later.
Do I need a credit check or a large down payment?
One of the advantages of buying from White Mountain Land is that we do not run a traditional credit check. Instead, we look at your ability to make the agreed‑upon payments, which we verify through employment verification or proof of income. Because the risk is mitigated by the deed of trust held by the seller, the down payment can be as low as 5 % of the purchase price. For example, a $30,000 lot in the Show Low area could be secured with a $1,500 down payment and monthly payments of roughly $350, which includes the tax portion. This structure opens the market to first‑time buyers, retirees, and investors who may have strong cash flow but limited credit history.
How does the due‑on‑sale clause protect me as a buyer?
The due‑on‑sale clause is a safeguard that requires the loan to be paid in full if the buyer decides to sell the property before the note is satisfied. While it sounds restrictive, it actually protects you by ensuring any future buyer inherits a clear title without lingering debt. If you find a buyer willing to pay a premium, you can settle the outstanding balance, release the deed of trust, and transfer ownership without negotiating a loan assumption. This clause also reassures the seller that the land will not be transferred with an unpaid note, which keeps the financing arrangement stable for both parties.