Seller Financing: How It Works and Who It Helps

Written by Cody McDonald | Aug 2, 2025 5:58:07 PM
With rising interest rates and tougher loan approvals, more buyers and sellers in Dallas-Fort Worth are turning to seller financing as a creative, flexible alternative to traditional mortgages.
At Mac Does REI, we’ve helped countless homeowners and investors use seller financing to unlock deals that banks would never approve.
Here’s how it works — and why it might be the right move for you.
 
What Is Seller Financing?
Seller financing (also called owner financing) is when the seller of a property acts as the bank and lets the buyer make monthly payments directly to them, instead of going through a traditional lender.
 
Basic Setup:
  • The seller and buyer agree on a purchase price, interest rate, and payment terms
  • A promissory note and deed of trust are created
  • The buyer takes possession while paying off the balance over time
Who Benefits From Seller Financing?
 
Homeowners:
  • Sell faster, especially to buyers who don’t qualify for traditional loans
  • Earn monthly income from interest
  • Move on from a property without waiting for bank delays
Buyers:
  • No credit check or bank approval required
  • Faster closing
  • Opportunity to buy a home when banks say no (self-employed, new credit, etc.)
Real Example in DFW
We recently helped a seller in Mesquite who was relocating out of state. The buyer had solid income but couldn’t qualify for a mortgage yet. We structured a seller finance deal with:
  • $20,000 down
  • 30-year amortization
  • 7.5% interest
The seller got cash up front and monthly payments — the buyer got a home.
 
Why Seller Financing Makes Sense in 2025
  • Interest rates are still high
  • More buyers are being denied loans
  • Off-market deals are growing
If you're selling a home free and clear or with low debt, seller financing can help you sell faster and make more over time.
 
Risks to Know (and How We Mitigate Them)
  • Buyer defaults? You can foreclose.
  • Need the cash now? Consider a note sale later.
  • Paperwork? We work with attorneys and title companies to structure everything legally and protect both parties.
 
Seller financing isn’t just for investors — it’s a powerful tool for everyday homeowners and buyers who need a different path.
 
Want to know if seller financing will work for your situation? Reach out to MacDoesREI.com — we’ll break it down in simple terms.