Owner financing (also called seller financing or owner will carry) is when the property owner finances the buyer instead of—or in addition to—a bank. The buyer typically signs a promissory note and makes payments to the seller over time, often secured by a deed of trust or mortgage.
How an owner-financed deal usually works
- Buyer and seller agree on price, down payment, interest rate, term, and any balloon date.
- At closing, title usually transfers to the buyer while the seller holds a lien for the unpaid balance.
- The buyer pays the owner/seller monthly; both sides track principal, interest, and late fees.
Who considers owner financing
Owners who want monthly income or a wider buyer pool. Buyers who need a path to purchase when conventional loans are out of reach. Agents coordinating creative purchase terms.
Owner financing vs a bank mortgage
A bank mortgage pays the seller out at closing (minus costs and liens). Owner financing spreads payment over time under terms the parties negotiate—then both need a clear way to manage the note.
Model payments with the OwnerFi Pro owner financing calculator.
OwnerFi Pro app
Get the OwnerFi App on Google Play or use app.ownerfi.app.