Seller financing (also called seller carry or owner financing) is when the property seller finances the buyer instead of—or in addition to—a bank. The buyer typically signs a promissory note and makes payments to the seller over time, often secured by a deed of trust or mortgage.
How a seller-financed deal usually works
- Buyer and seller agree on price, down payment, interest rate, term, and any balloon date.
- At closing, title usually transfers to the buyer while the seller holds a lien for the unpaid balance.
- The buyer pays the seller monthly; the seller tracks principal, interest, and late fees.
Who considers seller financing
Sellers who want a wider buyer pool, monthly income, or a way to sell when conventional financing is scarce. Buyers who need creative financing when a bank says no. Agents structuring creative closings for both sides.
Seller financing vs a cash or bank sale
A cash or bank-financed sale pays the seller out at closing. Seller financing spreads payment over time and can help close deals that would otherwise fall through—while creating ongoing note management needs.
When you are ready to estimate seller proceeds or manage a note after closing, use OwnerFi Pro seller tools.
OwnerFi Pro app
Get the OwnerFi App on Google Play or use app.ownerfi.app.