Buying primary residence with partial seller financing

[Jared Haxton]

Hello everyone! I'm wondering about the mechanics of having your realtor make an offer on a house and ask the seller to carry part of the financing.

Let's say you want to buy a $1 million home. The seller has about $400k in equity and you want to see if the seller will carry $300k of the loan at 3%. The rest will be a traditional mortgage.

I'm wondering some of the following things:

1. Who/what kind of company would facilitate the seller financing a portion of the sale? What might the structure look like?

2. What would be a good sales pitch to the seller to get them on board with the idea? Tax benefits? Long term payments to the sellers family?

3. Would the company that carries your conventional loan need any special things if you qualify for the loan amounts just fine?

4. Has anyone here ever done this? Bad idea? Pitfalls to watch out for?

Thank you! Looking forward to seeing other thoughts on this!