Seller financing with a mortgage

[Mark Wilson]

I have the opportunity to buy a house in a great area from a willing seller, as long as they can continue to live in it after the sale. I am thinking I would try to use some flavor of seller financing but unsure how to structure the deal. The house is worth ~$500k, the owner's existing mortgage is ~$220k. I know seller financing is better if the owner owned the home outright with no mortgage, but still curious how I might structure seller financing over, say, 5 years at which point I would refinance the home? Any other creative financing ideas that wouldn't involve a bank loan?