Definition
A sale in which the seller extends credit to the buyer rather than the buyer obtaining a bank loan.
Example
Owner financing at 7% with a five-year balloon closed a deal a bank would not underwrite.
Related terms
Frequently asked questions
What does Owner Financing mean in real estate?
A sale in which the seller extends credit to the buyer rather than the buyer obtaining a bank loan.
How is Owner Financing used in practice?
Owner financing at 7% with a five-year balloon closed a deal a bank would not underwrite.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.