What is seller financing?

[amara]

I’ve heard about seller financing in real estate deals. What is seller financing, how does it work, and when is it beneficial for buyers and sellers?

 

[Rick_Grimes]

Seller financing means that the seller is the one who provides the loan and allows the buyer to pay for the property in parts, as opposed to the buyer getting a loan from a bank. Typically, the buyer pays a certain amount upfront, and then continues with monthly payments, together with the interest, directly to the seller until the full amount is paid.

 

[Oscar]

Seller financing refers to a situation where the seller allows the buyer to pay him/her over time at agreed rates with payments and interest being made to the seller.

 

[Shane Warne]

Seller financing refers to the situation in which a seller of property or business finances the loan, the buyer makes his payments to the seller rather than a conventional bank loan.