Seller Financing Agreement

Note: This is just a summarized Draft. We will send you the complete document in PDF when necessary

Introduction to Seller Financing

Seller financing is an alternative to traditional mortgage loans where the seller of the property acts as the lender. In this arrangement, the buyer makes payments directly to the seller over a specified period until the full purchase price is paid off. This option can provide benefits for both parties, including easier qualification processes and flexibility in payment terms.

1. Buyer Information

  • Name:
  • Address:
  • Phone Number:
  • Email Address:

2. Property Details

  • Property Type: Tiny Home
  • Model Name/Number:
  • Purchase Price:
  • Down Payment Amount:

3. Terms and Conditions

a. Financing Structure

  • Total Purchase Price:
  • Down Payment: (Minimum of 10% of the purchase price)
  • Loan Amount: (Total Purchase Price minus Down Payment)
  • Interest Rate: (Fixed)
  • Loan Term: (16 years, Flexible)

b. Monthly Payments

  • Monthly Payment Amount:
  • Payment Due Date: (e.g., 1st of each month)
  • Late Payment Penalty: (e.g., 5% of the overdue amount after a 10-day grace period)

c. Prepayment

  • Prepayment Penalty: (None)
  • Right to Prepay: The buyer may pay off the loan early without penalty.

4. Requirements

  • Credit Check: The buyer agrees to undergo a credit check.
  • Income Verification: Provide proof of income or employment status.
  • Insurance: The buyer must maintain homeowners insurance on the property.
  • Maintenance: The buyer is responsible for all maintenance and repairs to the property during the financing period.

5. Default Terms

In the event of default, the seller reserves the right to:

  • Initiate foreclosure proceedings to reclaim the property.
  • Charge late fees as specified in the payment terms.

6. Acknowledgment

By signing this agreement, both the buyer and seller acknowledge that they have read and understood the terms and conditions outlined above and agree to abide by them.

Buyer Signature: __________
Date: __________

Seller Signature: __________
Date: __________

This Seller Financing Agreement provides a flexible alternative for purchasing your tiny home while ensuring clarity and security for both the buyer and seller.