Owner Financing
A structure where the seller accepts a promissory note for part of the purchase price instead of being paid all cash at closing.
Last updated September 5, 2026
Owner financing (seller financing) means the buyer pays a down payment at closing and owes the remainder to the seller over time, usually with interest. It can fill a gap when a bank will not finance the full price, or when the seller wants a higher total price in exchange for taking credit risk. Terms typically cover interest rate, amortization, balloon date, collateral, and default remedies. Buyers still underwrite cash flow; a seller note does not replace due diligence.