What is Seller Financing?
Seller financing is when the seller acts as the lender, letting the buyer make payments directly to them instead of getting a traditional mortgage. The terms are set in a contract and the seller keeps a lien until paid. It can help buyers who don’t fit standard lending, but both sides should use professional guidance.
Example: A retiring owner sells their home and carries the financing, collecting monthly payments from the buyer over 10 years rather than receiving all cash at closing.