What does "seller financing" entail?

Seller financing refers to an arrangement where the seller of a property provides a loan directly to the buyer to facilitate the purchase, allowing the buyer to pay the seller in installments rather than obtaining a mortgage through a traditional financial institution. This can be particularly beneficial in situations where the buyer may have difficulty securing a loan from a bank due to credit issues or other factors, or where the terms provided by the seller are more favorable.

In this scenario, the seller essentially acts as the bank, enabling the buyer to acquire the property while potentially streamlining the process and reducing upfront costs. This financing method can also allow for greater flexibility in terms of payment schedules, interest rates, and the overall terms of the sale, which can be tailored to suit both parties' needs.