The market changed.
Your strategy can, too.
Seller financing is an alternative way to sell in today’s challenging market. It can give a qualified buyer another path to purchase while you receive a down payment, monthly payments, and interest under agreed terms.
Explore the numbers
A sale is more than a price. It is also a set of terms.
A conventional sale delivers the proceeds at closing. With seller financing, you may receive a portion then and the rest over time. The right structure depends on what you need from the sale—cash now, income later, a defined payoff date, and a plan for the risks that come with holding the note.
Put your terms in perspective.
See how the price, down payment, rate, and payoff date affect what you receive. Change any number to explore a possible sale.
Set the terms
$50,000 paid at closing
A balloon means the unpaid principal becomes due at that point. A buyer’s ability to refinance is not guaranteed.
What is financed? The sale price minus the down payment. Monthly payments below are principal and interest only; property taxes, insurance, servicing and other costs are separate.
Your scenario
Monthly principal & interest received
$0Assumes each payment is made on timeDown payment + scheduled payments + remaining principal at the five-year balloon. This includes repayment of the home price and is not profit.
Planning estimate only. Assumes a fixed rate, level monthly payments, and full, on-time payoff at the chosen date. Excludes existing mortgage payoff, selling expenses, loan servicing, taxes, defaults, prepayments, and the time value of money. The terms must be reviewed for your property and buyer by qualified legal, lending, and tax professionals.
How the payments could unfold.
The buyer purchases the property. You finance an agreed part of the price, with the sale and repayment terms documented at closing.
At closing
You receive the negotiated down payment, less applicable selling costs and any existing loan payoff. The buyer’s obligation for the financed balance is documented and secured as appropriate.
Each month
The buyer makes payments that include principal and interest. A loan servicer can collect payments and maintain records. Taxes, insurance, and payment protections need to be addressed in the agreement.
At the agreed payoff
If the note includes a balloon, the unpaid principal becomes due on the agreed date. The buyer may plan to refinance or sell, but neither outcome is guaranteed.
The terms should work for you, too.
Seller financing is a strategy to evaluate, not a shortcut around due diligence. These are the questions to answer before an offer is made.
How much cash do you need at closing?
You receive some proceeds over time. Compare your immediate cash needs with the proposed down payment, expenses, and the timing of later payments.
Is there an existing mortgage?
Its balance, terms, payoff requirements, and possible due-on-sale provision can affect what is feasible. Have your loan documents reviewed before offering financing.
How will the buyer be qualified?
Ability to repay, loan documentation, servicing, insurance, taxes, and default remedies deserve careful planning. Applicable federal and Texas rules depend on the transaction and the seller.
What about taxes and legal structure?
Payment timing may change the tax picture. A Texas real estate attorney, qualified loan professional, and tax advisor should review the proposed terms for your situation.
Let’s see if the terms make sense for your property.
Tell me about the home, your mortgage, and what you want the sale to accomplish. We can decide whether seller financing deserves a closer look.