Go direct.
Seller financing makes you the bank.
Go direct.
Seller financing makes you the bank.
The Answer Most of Us Forgot
Until the rise of big banks and government in home lending about 100 years ago, people always bought and sold houses, they just did it differently. A common method was for a buyer to enter a legally-binding contract to pay a seller for a house in installment payments over time – with interest. This made a lot of money for the seller. When other institutions largely became the "middle-man" between buyer and seller, they took over this profit.
Seller financing has never gone away. It has always been legal. It made a comeback in the 1980s when interest rates went crazy. The Texas legislature re-affirmed seller financing in 2022. With home prices and interest rates today making housing unaffordable for many people, an answer can be found in returning to our roots. There are many buyers who are specifically looking for this kind of opportunity.
More money, easier, faster
In late 2025, we are in the middle of a strong buyer's market – there are more sellers than buyers, so buyers can be picky. Houses tend to stay on market longer, so sellers are dropping the price or renting out their home.
Here's how YOU can stand out against other sellers: offer buyers an unbeatable interest rate! Instead of slashing the price of your home, offer payments that the banks aren't willing to match right now. What buyers are actually looking for is a lower payment. Here are some benefits to you:
You keep more money – Buyers can afford to pay full value for your house.
You make more money – You can receive interest income.
Faster to sell – You now have a larger buyer pool, some of whom will be very interested in your offer.
Easier to sell – There is a lot less red tape in a seller-finance deal.
When you seller-finance, you are not a landlord dealing with leaky toilets in the middle of the night. You are like the bank: a loan servicer collects money for you every month and automatically deposits the money in your account. Your existing loan does not need to be paid off.
Learn about Seller Finance!
Do you want to know how a seller-finance sale is different from other sales? Actually, a lot is the same! Don't worry, there are professionals who know how to do all of this.
Your buyers should be vetted, just like any borrower. They should have a history of paying their bills.
You should use a loan servicing company to collect money and pay your own mortgage. Buyers pay them a small fee each month. The loan servicer provides you with an end-of-year tax statement.
Your insurance policy and escrow need to be set up properly.
The buyer will create a trust to buy your home.
If you reach out to me, it is important to me that you understand the process and feel comfortable with it.
Frequently Asked Questions
How much money do I make in seller finance?
Your profit is the interest you receive from your borrower, minus the interest you pay to your lender. You see some of this as monthly cash payment, while some of your profit is the result of paying down your own mortgage faster than your borrowers pay down their mortgage to you.
What happens when I want to buy a new house?
The loan servicer for the money you receive prepares annual tax statements and can prove to a potential lender that you have income to offset ongoing payments.
