The short version
The current owner agrees to finance the sale. You pay a down payment, then monthly payments to the seller at an agreed interest rate and term. The terms are written into a purchase and financing agreement that you sign at closing.
Why buyers choose it
- No bank approval or underwriting wait
- No credit check or income verification
- Small down payment and a fixed monthly payment
- Closing can happen in days, not months
What the agreement covers
Price, down payment, interest rate, number of payments, who pays property taxes and insurance, what happens if a payment is late, and when the deed transfers. Read it carefully and ask questions about anything that is unclear.
Protecting yourself
Ask for the agreement in writing before you pay, make sure it is recorded with the county where your state requires it, keep records of every payment, and consider having an attorney review it.
Common questions
Is seller financing legal?
Yes. It is a long-standing way to buy property. Rules vary by state, which is why terms are written into a formal agreement.
Can I refinance later?
Usually. Many buyers refinance with a bank once their credit or income allows, paying off the seller early.
Every listing shows the price, the down payment and the monthly payment up front.
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