What seller financing is, which terms are common, and how to check whether a seller-financed deal actually works.
With seller financing the seller lends you part of the purchase price. You pay them monthly interest and principal instead of a bank, which makes deals possible that a lender would never fund.
Mostly with sellers who own the property free and clear, are not in a hurry and prefer monthly income over one lump sum: heirs, retiring landlords and owners of properties a bank considers too risky.
A down payment of 10 to 20 percent, a rate of 5 to 8 percent, amortization calculated over 20 to 30 years and a balloon after 3 to 7 years. You pay a low monthly amount and pay off the rest in one go later, usually by refinancing or selling.
Always run three numbers: the monthly payment at the agreed rate, the cashflow after taxes, insurance, maintenance, vacancy and management, and the remaining balance on the balloon date. If refinancing is not certain, selling must be a realistic exit.
Phrases like owner will carry, seller financing available, OWC, flexible terms or no bank needed. Kavvl reads listing copy automatically and only shows properties where such a signal is verifiable.
In short
Seller financing lowers the entry barrier but moves your risk to the balloon date. Model that date before you make an offer.
Data from public sources and licensed feeds. Not investment advice.