By Bob Walsmith Jr.
2022 President
Santa Barbara Association of Realtors
Competition in this current housing market is stiff. Low supply and high demand are just two factors complicating the home search for many prospective buyers. Not only that, but qualifying for a traditional loan can be difficult, especially with the current rise in interest rates. One option outside the norm is seller financing. With seller financing, the owner of the home offers the buyer a loan. Thus, you can avoid the pitfalls and challenges of the traditional mortgage experience. Seller financing offers several benefits, such as lower closing costs. But they come with their own challenges as well. Here’s how this lending process works and whether it’s right for you.
What Is Seller Financing?