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Frequently Asked Questions about Seller Financing


General Questions

  • What is the interest rate on Seller Financing?  We have been working with anywhere from 6-8% fixed APR depending on the down payment, the term (how many years), and the negotiation.


Buyer Questions

  • How much do I have to put down?  That depends on the negotiation.  You can normally get better terms the more you put down.  At least 20% is normally a minimum.  Contact us for information on special deals with more motivated sellers.

  • Where do I send the payments?  You send payments directly to the seller’s account.  This can be discussed and finalized prior to closing.  Buyer is responsible to pay any transfer fees to deliver the payment to the seller.

  • When do I own the property?  You own the property right away.  The seller becomes the lienholder with a first position against the title.  You are responsible and liable for the property once you take possession.

  • Is there a penalty if I want to pay off the loan early?  No.  If you want to pay off the loan before the end of the term we simply reference the original amortization table to find the corresponding payment which will note the remaining principal balance for the loan as of that payment.


Seller Questions


  • How much do the buyers put down?  Depends on the negotiation.  You have to decide the minimum you want down to deliver your property.

  • How do I receive the payments?  This is up to you.  It is the buyer’s responsibility to make the payments and to where you want them.

  • How am I protected if the buyer doesn’t pay?  Your contract will state how much, when, and how the Buyer should pay and the conditions upon which you can foreclose on them.  The mortgage can be recorded and you can reclaim the property if the buyer defaults on their payments.

  • Does it cost me more money to offer financing?  No.  You will actually earn more money by collecting interest with the monthly payments from the Buyer.



If you are a Seller and would like to offer a Financing Incentive to stimulate the possibilities to sell your property please contact us.

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