Is Seller financing an option?

Question

I am looking at what options are available for me for financing before I start looking for deals. How can I determine if seller financing is one of my  options before I start talking to sellers. Can it be done?

G. Brian Davis · Answer

Hi @Isaiah Carrasco, seller financing isn’t something you pre-qualify for like a bank loan, it’s entirely deal and seller specific. The way to know if it’s an option is by targeting the right sellers (free and clear owners, tired landlords, inherited properties, long time owners) and having a clear reason why it benefits them. A bit more detail on your market, price range, and strategy would help, and it would also be helpful to share what kinds of structures you’re considering so people can offer concrete ideas.

Arman Ahmed · Answer

@Isaiah Carrasco

Isaiah, yes, seller financing is absolutely an option, but it depends on the seller’s willingness and the property type. You can usually determine if it’s possible by asking the seller or their agent directly if they’re open to carrying a note, and by looking at properties that are owned free and clear—sellers with existing mortgages may have restrictions. It can be done on both single-family and small multi-family properties, and often works best when the seller is motivated to move quickly or wants steady income rather than a lump sum. Always make sure the terms—interest rate, payment schedule, balloon, and contingencies—are clearly spelled out to protect both sides.

Chris Seveney · Answer

Seller financing is very rare. And most seller finance deals still require 20 to 30% down. There are a lot of people selling courses making it seem like you can do this with 0% down, but it is extremely rare.

Matthew Bernal · Answer

Seller financing usually is not something you “pre-qualify” for the way you would with a bank. It’s less about your borrower profile and more about the specific seller and property. I’ve seen it work most often when the seller’s situation lines up with the structure free and clear ownership, longer timelines, or tax planning goals. It tends to be very deal-specific rather than something you can line up in advance.

Is Seller financing an option?

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