Seller financing is a creative lending technique that allows the home buyer to take out a mortgage from the home seller instead of, or in addition to, a traditional bank. In many cases, sellers are willing to be flexible in regard to credit score, income, down payment, and other issues.

This comprehensive guide can help you understand the essentials of buying a home with seller financing.

Seller Financing 101

Seller Financing Basics– Learn the essentials of buying a house through the seller in this easy-to-understand explanation.

The Seller Financing Process

Seller Financing Step-by-Step – Read this detailed overview to learn how to find properties offering seller financing, put together an offer, and close with the proper loan documents.

Where to Find Seller Financed Properties – Only a small percentage of homeowners are willing or able to offer seller financing. Here’s what to keep an eye out for.

Making an Offer on a Seller Financed Property – Although the seller is willing to take a risk, he still wants to get a good deal and be sure that the buyer will pay back the loan reliably.

Types of Seller Financing

Assumable Mortgages – An assumable mortgage is a type of seller financing that allows the buyer to take over the seller’s original mortgage.

Wrap Around Mortgages – A wraparound mortgage is a type of seller financing that allows the original owner to retain his home loan while receiving payments from the buyer.

Seller Carry Back Mortgages – A seller carry back mortgage allows a buyer to take out a small loan from the seller in addition to his primary loan from a bank.

Private Party Mortgages – A private party mortgage is a type of seller financing that allows the buyer to completely avoid traditional lenders.

Seller Financing Advice

Seller Financing Benefits – Seller financing has several benefits, particularly for buyers who don’t meet traditional lending qualifications.

Seller Financing Risks – Not everything is good news. Learn about the drawbacks of seller financing including balloon payments, documentation problems, and seller non-payment.

Seller Financing Laws – The most important issue in seller financing is the notorious “due-on-sale” clause. Learn how it affects you.

Common Seller Financing Questions – Find the answers to the most confusing seller financing issues.