One of the greatest advantages of a bond for deed is its flexibility—specifically, the wide range of real property types that can be financed.
The emphasis here is on real property. A bond for deed can only be used to finance immovable property, meaning land and improvements that are legally classified as real estate. It cannot be used to finance movables such as boats, RVs, or mobile homes that have not been legally converted to real property, even if those items are used as permanent residences.
Types of Property Commonly Financed with a Bond for Deed
A bond for deed can be used to finance virtually any type of real estate, including many property types that are often difficult or impossible to finance through traditional lenders, such as:
- Rural properties
- Manufactured housing
- Land-only transactions
- Rehab or fixer-upper properties
- Commercial properties
Many banks and mortgage companies are reluctant—or outright unwilling—to lend on one or more of these property types. As a result, buyers and sellers often turn to a bond for deed as a practical and flexible alternative.
Manufactured Housing and Rural Property: A Common Use Case
One of the most common bond-for-deed scenarios involves manufactured homes located on rural land. Both manufactured housing and rural properties tend to fall outside the comfort zone of many traditional lenders.
A bond for deed allows the buyer and seller to negotiate terms directly and complete a transaction that might otherwise be impossible using conventional financing.
The Critical Requirement: Legal Immobilization
There is an important distinction to understand when manufactured housing is involved.
A bond for deed cannot finance a mobile home by itself. However, it can finance a manufactured home if—and only if—the home has been legally immobilized and made part of the real property.
Immobilization does not simply mean removing the wheels or placing the home on blocks. It requires:
- A formal legal immobilization
- Proper recording in the parish where the property is located
Once this process is completed, the manufactured home is legally treated as part of the real estate and may be included in a bond for deed transaction.
Why This Matters
This flexibility makes the bond for deed an especially powerful tool for:
- Buyers who cannot obtain traditional financing
- Sellers who want to expand their buyer pool
- Transactions involving properties that lenders typically avoid
In short, a bond for deed allows buyers and sellers to structure financing for unique or non-traditional real estate—while still working within a legally recognized framework for real property transactions.
