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.

 

[Clay]

Seller financing is a real estate arrangement where the seller allows the buyer to pay for the property in installments directly to them instead of taking a loan from a bank.

 

[Oscar]

Seller financing: The seller finances this purchase by providing money to the buyer, so instead of obtaining a loan from a bank, the buyer pays part of the money back to the seller through installments.

 

[John Smith]

Seller financing is a real estate arrangement where the seller acts as the lender, allowing the buyer to make payments directly to them instead of using a bank loan. The buyer provides a down payment and pays installments with interest. This option benefits buyers with limited financing access and sellers seeking steady income.