What is Seller Financing?
Seller financing is when the property seller acts as the lender instead of a bank. The buyer makes monthly payments directly to the seller at agreed-upon terms. This allows deals to close without traditional bank qualification and often with more flexible terms.
Formula
Monthly Payment = Standard Amortization on Seller's Note
Good
Below-market interest rate with reasonable term
Great
Low down payment with no bank qualification required
Watch For
Balloon payments can force refinancing at unfavorable terms
Frequently Asked Questions
What is a good Seller Financing for rental property?
A good Seller Financing is Below-market interest rate with reasonable term. A great Seller Financing is Low down payment with no bank qualification required. Be cautious if Balloon payments can force refinancing at unfavorable terms.
Track This Across Your Entire Portfolio
becvio automatically calculates Seller Financing and 20+ other metrics for every property in your portfolio. Free to start.
Start Free — No Credit Card