Down payment for owner finance deal

2 Replies

I have a seller willing to do a seller finance deal on a property they own free and clear. They won't sell it for less than what they put into it around 80k. Seller is open to seller financing but wants a down payment. but unsure how much. This would be a buy and hold.

Purchase Price: $80k
Market rent 1000/mo
15 years and refinance
payments at $400-$500/mo to seller
no idea how much interest or down payment.

Suggestions? I know little to no down payment is preferable :)
 Obviously my first seller finance deal. 

Hi Michael,

How can you know how much the monthly payment to the seller will be if you don't know how much the down payment or interest rate will be? I would run a few different scenarios to present:

1. $0 down, amortized over 30 years, 6% interest, balloon payment due in 15 years. Monthly payment $479 (P&I only)

2. $10,000 down, amortized over 30 years, 5% interest, balloon payment due in 15 years. Monthly payment $375 (P&I only)

Punch in whatever numbers work for you but give the seller a few options that you can work with.

Until he/she can tell you how much they want for a down payment and what interest rate they're willing to give you and the amortization period then you can't come up with a monthly payment.

Best of luck.


@Eric Black  thanks for the help. I found an amortization calculator and following your advice should help me give this seller some options


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