A property seller may assist a buyer by providing some or all of the financing needed. In some cases a small, second mortgage may be extended, but when bank loans are unavailable, the seller may have to provide most of the purchase price by accepting a mortgage. There are two principal reasons for a seller to consider extending a home mortgage loan:

1. Institutional lenders are unwilling to finance the sale. You may be able to extend favorable loan terms and an interest rate to rescue the sale.
2. By providing favorable financing, you may get a higher price for the property.
There are two principal reasons for a buyer to consider seller financing:
1. To be able to negotiate a larger loan with favorable mortgage terms. More->