What is “seller financing?”

Seller financing is a loan that the seller of your home makes to you. This could be instead of or in addition to borrowing from a traditional lender. Seller financing might be offered when you cannot qualify for a bank loan for the full amount or when you are assuming a portion of an earlier mortgage taken out by the seller and need a loan for the rest. Always tell a lender about seller or any additional financing you are receiving.


If you accept seller financing, be sure you have an independent appraisal so that you know how much the house is worth. You do not want to overpay for the house just because the seller is providing financing.

Ask CFPB provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically.

Ask CFPB includes links or references to third-party resources or content. The CFPB does not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer