How Does Seller Financing Work?
Learn how owner financing can help buyers and sellers in Maryland.
✅ Seller financing avoids traditional mortgage hurdles.
✅ Buyers benefit from flexible terms and faster closings.
✅ Maryland law requires proper legal documentation for enforceability.
What is Seller Financing?
Seller financing is when the seller acts as the lender.
Benefits for Buyers
Flexibility, easier qualification, and speed.
- No bank approval
- Lower closing costs
- Creative terms
Benefits for Sellers
Can attract more buyers and earn interest income.
- Wider buyer pool
- Monthly cash flow
- Potential tax advantages
Risks and Protections
Legal contracts and default protections are key.
- Balloon payments
- Attorney review
- Proper recording
FAQ
Is seller financing common in Maryland?
It’s less common but valuable in unique situations, especially when buyers face mortgage hurdles.
Does seller financing require an attorney?
Yes, contracts should always be reviewed by legal professionals.
Can seller financing include balloon payments?
Yes, but terms must be clear and compliant with Maryland law.
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