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. Some homeowners use seller financing as an incentive to draw in potential buyers. With seller financing, buyers do not have to meet the traditional lending standards set by Fannie Mae and Freddie Mac. Instead, they only need to meet the qualifications set by the home seller. In many cases, the seller is willing to be flexible in regard to credit score, income, down payment, and other issues.

See: Seller Financing Basics