Seller Financing?

Typically in a seller finance deal there needs to be a sizable down payment 10-20%. You also work out what interest rate will be paid and the terms of the loan. Usually it is not reported to a credit company, because it is an individual that the payments are going to. I would suggest using an escrow company for the payments. The buyer pays the escrow company and the escrow company allocates the money to where it needs to go.

A seller finance will take place when the owner owns the property and is willing to carry the loan for the buyer; sometimes for the duration of the loan until it is paid in full, or sometimes for a set period of time, and then the buyer has to get a loan from a bank, etc. or sometimes for part of the selling price; i.e. you can get a loan for $60K and he carries a loan for $40 and total price of house is $100K.

Buyer can make payments directly to seller without an escrow account; it is all stated in the contract: the selling price, the interest rate, the term of the loan. I also include a schedule of the amortized payments that show the interest paid and the principal paid with every monthly payment.
The seller should add buyer onto the insurance of the house; also the property tax payments need to be paid by the buyer, but seller will want to make sure they are getting paid.

If an escrow account is opened, then all these items would be handled by the agent.

Wishing you success,
Valerie

Seller financing can be done on most properties as long as the seller is willing to let you do seller financing. Banks will not often do seller financing but you can always ask.

If a person or seller has a mortgage on the property you will often do seller financing on the equity of the property. If the seller still owes a mortgage themselves they will often do what is known as a wraparound mortgage or subject to purchase.

The other two comments would be correct as well.