Seller Financing for Investors
Seller financing lets you buy a property without ever qualifying at a bank.
When a seller owns a property outright (or has strong equity), they can act as the lender — you make monthly payments directly to them instead of to a mortgage company. The down payment, interest rate, and loan length are all negotiable between the two of you, which can mean lower closing costs and more flexible terms than a conventional loan.
Example: instead of financing $200,000 through a bank, you agree to pay the seller directly at a negotiated rate over a set number of years — no bank underwriting in the middle.
Takeaway: Put every term in writing with a real estate attorney, and confirm there's no existing mortgage with a due-on-sale clause before you structure the deal.