I want to buy a duplex using seller financing

6 Replies

This is completely between you and the seller. I have seen literally everything in terms of terms for OF deals. Most recently we bought a condo at 25% down and 5% interest which we negotiated because we knew the sellers needed cash to buy into another property and the overall interest rate and loan length meant nothing to them. Find out what the seller's motivation is.

@Jeremy Christensen Completely agree with the above post, depends on the sellers interest.  I bought a number of seller financed deals, usually anywhere from 10-20% down, 5% interest (going rate at the time), 30 year amortization and 5-7 year balloon.  Most seller don't want to or can't wait all 30 years to get their money.  So prepare to refinance or sell in 5-7 years for the balloon.  10 or 15 year balloon would be better but tougher to find.

@Jeremy Christensen it would be rare if it happened. As a seller if a buyer cant make a down payment then I am instantly questioning their ability to make monthly payments. I would also jack up their interest rate to put more money in my pocket.

Also any seller doing this is going to do a credit check and ask for proof of funds.