fromRedfin | Real Estate Tips for Home Buying, Selling & More
4 days agoWhat Is Owner Financing? How It Works for Buyers and Sellers
Owner financing, sometimes called seller financing, is when the home seller acts as the lender instead of a bank. Instead of applying for a traditional mortgage , the buyer makes payments directly to the seller based on an agreed loan term and interest rate. Think of it like the seller extending credit to the buyer: the buyer pays in installments over time, and the seller holds the financing note until the property is paid off or refinanced.
Real estate