Owner carry (also called seller financing or owner financing) is when the property owner finances the buyer instead of—or in addition to—a bank. The buyer typically signs a promissory note and makes payments to the seller over time, often secured by a deed of trust or mortgage.
How an owner-carry deal usually works
- Buyer and seller agree on price, down payment, interest rate, term, and any balloon date.
- At closing, title usually transfers to the buyer while the seller holds a lien for the unpaid balance.
- The buyer pays the seller monthly; the seller tracks principal, interest, and late fees.
Who considers owner carry
Sellers who want a wider buyer pool, monthly income, or a path to sell when conventional financing is scarce. Buyers who need creative financing when a bank says no. Agents who structure creative deals for both sides.
Owner carry vs cash sale
A cash or bank-financed sale pays the seller out at closing. Owner carry spreads payment over time and can help close deals that would otherwise fall through—while creating ongoing note management needs.
When you are ready to model payments or manage a note after closing, use OwnerFi Pro tools.
OwnerFi Pro app
Get the OwnerFi App on Google Play or use app.ownerfi.app.