Seller Financing: A Simple, Flexible Way to Sell Your Home
Seller financing (also called “owner financing”) is an alternative way to sell your home without going through a bank or traditional lender. Instead of the buyer getting a mortgage from a bank, you (the seller) act as the lender. The buyer makes monthly payments directly to you until the home is paid off, or until they refinance later.
Why Consider Seller Financing?
Sell faster
Attract buyers who may not qualify for a bank loan.
Monthly income
Collect steady payments instead of waiting for a lump sum.
Higher price
Seller-financed homes often sell for more since terms are flexible.
Tax benefits
Payments spread out over time may reduce your immediate tax burden (consult your tax advisor).
Control
You set the terms: interest rate, down payment, and length of loan.
How Does It Work?
Agreement
You and the buyer agree on the price, down payment, interest rate, and monthly payments.
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Promissory Note
The buyer signs a legal document promising to pay.
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Deed of Trust/Mortgage
The buyer gets possession of the home, but you keep a lien on the property until it’s paid off.
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Flexibility
Often, these agreements last 3–5 years, giving the buyer time to refinance with a bank later.
Payments
The buyer pays you monthly, just like they would pay a bank.
Is Seller Financing Right for You?
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![Illustration of a house with a money bag inside, symbolizing real estate or property investment.]()
You want to sell your home, but still receive income over time.
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![Illustration of a bank building with columns and a triangular roof labeled 'BANK' in white text.]()
You don’t mind acting as the “bank” for the buyer.
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You want to attract more potential buyers and possibly get a higher price.
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![A hand holding a money bag with a dollar sign, a percentage sign, and a red circle representing a discount or interest rate.]()
You may reduce your immediate tax burden by spreading payments over time.
Seller financing isn’t for everyone, but it can be a powerful tool for homeowners looking for flexibility. We’ll walk you through the process so you know your options and can decide what works best for you.
