What Is Seller Financing?
In a seller-financed transaction, the seller agrees to accept payments over time rather than receiving the entire purchase price at closing. The buyer signs a promissory note outlining the loan terms, including the interest rate, payment amount, loan length, and any balloon payment, if applicable.
Some people mistakenly call this a “land contract,” where the buyer does not take ownership until a later date. Though similar, in a seller-financed transaction, the buyer receives ...
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