What is the financing type called when a property seller provides all or part of the financing?

The financing type in which a property seller provides all or part of the financing to the buyer is commonly referred to as owner financing. This arrangement allows the seller to act as the lender, enabling the buyer to make payments directly to them instead of seeking a traditional mortgage from a bank or financial institution.

In owner financing, the terms of the loan—such as the interest rate, payment schedule, and consequences of default—are typically negotiated between the seller and the buyer. This can be advantageous for buyers who may have difficulty securing financing through conventional means. It also allows sellers to attract more potential buyers and possibly sell their properties more quickly.

While "seller financing" may seem similar and is often used interchangeably with owner financing, the term "owner financing" specifically emphasizes that the seller is also the owner providing the loan. Understanding the nuances between these terms can help in navigating real estate transactions effectively.