What is seller financing?
Seller financing (also called owner financing) means the buyer pays you over time instead of getting a bank loan for the full price. The buyer makes a down payment, then sends you monthly payments with interest until the balance is paid or refinanced.
Plenty of good buyers can’t get a traditional mortgage right now: self-employed people, new business owners, people rebuilding credit, or buyers who simply don’t fit a bank’s checklist. Seller financing opens your home to them.
Why Utah sellers choose it
- A higher sale price. Because you’re offering flexible terms, buyers are often willing to pay more.
- Monthly income. You earn interest on the balance, which can beat what savings accounts pay.
- More buyers. Your home isn’t limited to people who can get bank approval.
- Possible tax advantages. Spreading the gain over several years (an installment sale) may lower your tax bill. Ask your tax advisor.
- A faster sale when the market is slow or your home is hard to finance.
How it works, step by step
1. We look at your numbers
Do you own the home free and clear, or is there a mortgage? How much monthly income would you like? We compare seller financing against a traditional listing and a cash offer so you can see which nets the most.
2. We set the terms
Price, down payment, interest rate, monthly payment, and how long before the buyer pays you off (often with a balloon payment in a few years). A larger down payment protects you.
3. We find and screen the buyer
Seller financing only works with a qualified buyer. We look at income, credit history, and down payment before you commit.
4. We close through a title company
In Utah, seller-financed sales are usually documented with a promissory note secured by a trust deed, or with a real estate contract (often called a contract for deed). The title company records everything, and a loan servicing company can collect payments for you.
Good to know: If you still have a mortgage, most loans have a “due-on-sale” clause, so the setup needs extra care. Federal and Utah lending rules can also apply depending on the property and how many homes you finance. I work with title companies, licensed loan originators, and real estate attorneys to set it up correctly. This page is general information, not legal or tax advice.
Seller financing vs. contract for deed
With a note and trust deed, the buyer gets title at closing and you hold a lien, like a bank would. With a contract for deed, you keep title until the buyer pays in full. Each has pros and cons, and I’ll help you pick the one that fits your goals.
Is seller financing right for you?
It tends to work best if you own the home outright or have a lot of equity, you don’t need all your cash right away, and you’d like steady income. If you need every dollar at closing, a top-dollar listing or an as-is cash offer may fit better. The free consultation shows real numbers for all three paths.
