I was looking at a house today that the seller wants to sell Contract for Deed. The seller want 105,000 for the house with 10,000 down and is charging 9.99 % interest. He also wants $820.00 a month. I am confused about a couple of things. This may seem like a really stupid questions but here goes. When I asked how much I would have to finance at the end of the year, I was told 95,000. What happened the all of the money that I paid out for that year. Is 9.99% kind of high interest. Could I possibly get the house cheaper, since the market is so slow right now.

First do you think you can get a loan in one year, and if so, why can't you get the loan now.

It souns like this is more or either a lease to own, or you are merely paying interest only for the year.

But at the end of the year, if you can't get a new loan, they keep the 10,000 and all of your payments and you are out.
Many contract for deeds would be for 5, 10 or even 15 or 20 years and allow you to pay the entire home off over the years, at worst about 3 years to give you time to improve your credit, since normally you pay a home on contract either because you don't have credit or you don't want to sue your lines of credit.

I would not want to get into a home I had to pay off with new loan in 12 months, if you could not, or the home is not valued at 95,000 in 12 months you lose everything