Skip to main content

Many sellers call us in this current real estate market to see if seller financing is a logical way to sell their home. The answer to the question, “Is seller financing right for me?” is that it depends on your circumstances.

In a call with our Skelly specialists, we would ask you the following questions to determine if you should sell with seller financing.

  1. What is the current market value of your home? (We can help you with this or can get you a close estimate.
  2. What is your mortgage balance?

These two questions will help us determine a number for you that will tell us if seller financing is a good idea for you as a seller. From there, you can determine how long the life of the seller financed loan will be (15 or 30 years) and what interest rate you want to charge as a seller.

For example, let’s say my home is worth $550,000 and I only have $75,000 remaining on my mortgage balance. As a seller interested in seller financing, that would give me a numerical value of 14. Any numerical value under 20 qualifies for seller financing!

Home Value & Mortgage Balance 

A 14/20 is approved for seller financing!

Once I know that seller financing is a good fit for me, I can then determine the length and interest rate of my loan. For example, if I determine a 15 yr loan at 5% interest, then the calculations tell me that I can expect to receive $3,756 of monthly income over the life of the loan.

Monthly Payment Paid to You

Next, once I am aware of these calculations for my specific situation, I can then compare and contrast traditional financing calculations with seller financing calculations. Finally, the time has come to determine if seller financing is a good fit for me! And it looks to be a very good option in this situation.

                                                       Traditional Financing vs Seller Financing Returns

Every seller is different, but our calculations are a reliable guide to let you know if you should consider seller financing for your set of circumstances.

Why not give it a try? Click the button below to see if seller financing is a good option for you to consider in the sale of your home!

Leave a Reply