Land contracts are an alternative to traditional mortgage financing, often used by buyers who cannot qualify for a regular mortgage. In a land contract, the seller finances the property for the buyer, who makes payments directly to the seller until the purchase price is paid off. This can be helpful for those who have experienced foreclosure or short sale, but it also has some downsides.

Land contracts can be structured in different ways, such as a traditional land contract where the seller keeps the title until the contract is paid off, or a wrap-around land contract where the buyer gets the deed immediately but the seller continues paying the existing mortgage. The contract should clearly outline the sales price, down payment, interest rate, payment amounts, and responsibilities of both parties.

The main pros of a land contract are that it's easier to get financing, it's a win-win for the seller, and it provides more opportunities to purchase a home. However, the cons include the buyer depending on the seller, potential vagueness in the contract, higher interest rates, and complications around homeownership. Buyers can later refinance the land contract into a traditional mortgage if they improve their credit and meet lender requirements.