Why might a seller want to finance the sale?
Seller financing, also called owner financing, is one way to move a property sale forward if the buyer cannot obtain a mortgage from a traditional source. Buyers may be unable to obtain a mortgage because they lack a good credit history, a large down payment, or long enough work history to qualify for a traditional mortgage. Or, they may be unable to obtain a mortgage through a traditional lender because of the age or condition of the property.
Seller financing can help a seller obtain a higher price for the property than if the buyer finances the mortgage through an institution because the property doesn’t have to appraise for a specific amount. Sellers can also sell a property as-is more easily with seller financing. Seller financing is usually quicker than financing through a traditional lender because appraisals and inspections aren’t necessary unless the buyer requires them.