Seller financing has several benefits, particularly for buyers who don’t meet traditional lending qualifications. Here are some of the best features seller financing has to offer:

• The ability to avoid traditional requirements. Homeowners usually know that people seeking seller financing won’t meet the standard bank requirements. Sellers are almost always willing to accept some weaknesses (poor credit, non-provable income, etc.) as long as they feel confident that the buyer will be reliable in making payments.

• The opportunity to negotiate. With seller financing, you’re dealing with a person instead of a huge lending institution. It is often possible to negotiate the terms of the seller financed deal on issues such as length of loan and interest rate.

• Fewer closing costs. Most people offering seller financing aren’t going to make up excessive closing costs as is common with banks. Take away the unnecessary fees and you could save hundreds.

• Sooner closing. If you are getting complete seller financing with no bank involvement, it is often easier to push for a closer closing date.

• No prepayment penalties. Unlike most banks, sellers are unlikely to require fees for early loan payment. This makes it easier for you to refinance or pay off your mortgage sooner than expected.

Sound too good to be true? Don’t get excited just yet. Be sure to take a look at the companion article: Seller Financing Risks.