Frequently Asked Questions
Everything you need to know about owner financing and our marketplace.
General
What is owner financing?
Owner financing (also called seller financing) is a transaction where the property seller provides financing to the buyer, eliminating the need for a traditional mortgage from a bank or lender. The buyer makes payments directly to the seller according to agreed-upon terms.
Is owner financing legal?
Yes, owner financing is legal in all 50 states. However, there are federal and state regulations that govern these transactions, including the Dodd-Frank Act and various disclosure requirements. Our platform helps ensure compliance with these regulations.
How is OwnerFinancing.ai different from other real estate sites?
We specialize exclusively in owner-financed properties. Our platform offers unique search filters based on financing terms (down payment, APR, balloon), AI-powered ad creation, and educational resources specifically for owner financing transactions.
For Buyers
What credit score do I need for owner financing?
Credit requirements vary by seller. Many sellers are more flexible than traditional lenders, but most will review your credit history. Some properties may be available with no credit check, while others may require minimum scores. Each listing shows the seller's requirements.
How much down payment is typically required?
Down payments typically range from 5% to 20% of the purchase price, though this varies by seller. Use our search filters to find properties that match your down payment budget.
Can I refinance an owner-financed property later?
Yes, you can typically refinance with a traditional lender after establishing payment history and improving your credit. This is especially important for loans with balloon payments.
For Sellers
Why should I offer owner financing?
Owner financing can help you sell faster, attract more buyers, earn interest income, and potentially defer capital gains taxes. It also allows you to set your own terms and often results in higher sale prices.
What happens if the buyer stops paying?
The contract should include default provisions. Typically, sellers can initiate foreclosure proceedings similar to traditional mortgages. We recommend working with a real estate attorney to ensure proper protections.
Do I need to own the property free and clear?
Not necessarily, but it's simpler. If you have an existing mortgage, you'll need to continue making those payments. Some mortgages have "due on sale" clauses that could be triggered, so consult with your lender and attorney.