Seller financing lets buyers and sellers bypass traditional lenders, with sellers setting loan terms, interest rates, and repayment schedules directly through private agreement.
In California, steep prices and elevated mortgage rates are pushing some buyers toward flexible terms that traditional lending may not provide today.
For sellers, the structure can help move property while creating steady income and potentially easing immediate tax burdens during challenging market conditions.
Typical deals include negotiated down payments, monthly installments, and often a balloon payment after several yr, so buyers need payoff planning early.
When properly aligned, seller financing can unlock stalled transactions, but terms need careful structuring with agents, attorneys, and financial professionals involved early.