I am planning on buying a home through a contract for deed. The purchase price is 160,000. I will be discussing the terms with the owner shortly and would like to be knowledgeable. What is a good interest rate, and what are some important things to go over when deciding terms

You should not do this without a lawyer or a qualified real estate agent. I know you are probably doing this to save money, but what if you get the short end of the stick and these people are not above board with you ?

Tick

As a seller, I would be looking for at least 10 percent down payment, tand hopefully 15 percent.

The less down payment the higher the interest rate.
Also this is not really like a mortgage, and in some contracts it is not really referred to as interest, merely a monthly payment for so many months to pay off the debt. Or to go to a ballon note at a future date.

I have always used 10 percent, for many years, if the people had the credit to get a real loan, they would, so it means this is often a high risk loan. So I have friends who even use 12 to 15 percent interest on thiers.

Also most have terms for default where it reverts to a rental if you are 10 to 30 days in defualt of any condition of the contract.

Also many will require you pay for insurance, taxes and other repair costs.