Seller Carryback Financing

Referred to as seller financing or owner financing.

• Benefits buyers with lower credit scores.
• Shorter loans with borrowers obtainng financing from a bank at the end of the term or pay off the loan.
• Property owner offering seller financing can boost the sales price in addition to collecting interest on monthly payments. 
• Buyers need to confirm the seller is free to finance (they have no mortgage or their mortgage lender allows it) and should be prepared to make a down payment.
• Buyer should be transparent why a traditional mortgage is not feasible. 
• Faster sales process saving buyer qualifying for a mortgage, closing costs, and appraisal fees.
• Sellers make more money with the interest.
• Typically carry a higher interest rate than buyers would typically be given with conventional financing.
• Sellers take on risk buyer does not pay back loan and leave owner to foreclose on the property.
• In seller financing, all of the money is not paid at once instead over the term of the loan.