HomeGlossaryOwner Financing
Mortgage Glossary

Owner Financing

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Owner financing is a sale in which the seller extends credit to the buyer directly, instead of a bank or mortgage lender.

What Owner Financing means

The buyer pays the seller per a promissory note and mortgage. It suits unique properties or buyers who can't get traditional financing, often at negotiated terms.

Florida example

A Florida seller of a rural property offers owner financing to a buyer who can't qualify conventionally, taking monthly payments at an agreed rate with a balloon due in a few years.

What it is

Owner financing is when the seller acts as the lender and you pay them directly. It skips the traditional bank loan.

The terms are set in a private agreement between you and the seller.

When it helps

Owner financing can work for buyers who need flexible terms or face credit hurdles. The details must be spelled out carefully.

We help buyers structure owner-financed deals safely. Reach out and we will guide the terms.

Related program: Learn more →

Get Pre-Approved FreeAll Glossary Terms

Related Mortgage Terms

Owner-OccupiedPar RatePartial Claim
Still have questions?
Talk to a licensed Florida mortgage broker — no cost, no obligation.
Call (561) 300-0380
Explore More
Full Mortgage GlossaryFlorida Mortgage FAQFlorida Loan ProgramsMortgage CalculatorsApply for Pre-Approval