An alternative form of financing is owner financing aka seller financing. This means the owner participates in financing the buyer’s purchase of the property, either in whole or in part. There are several reasons an owner would provide financing:

· To assist buyers to purchase the home, particularly when real estate market is down

· To collect the interest — rather than commercial lenders being the beneficiary and get higher return on investment

· To bring the real estate up to marketable condition, such as a fixer-upper

How buyers will benefit of owner financing; an arrangement such as
this could give them the home at a good market price, perhaps with
little down, at a lower interest rate than with conventional financing.


How Sellers will benefit of owner financing; the sellers sell their homes at market value much faster and get an excellent return on their money.