Seller/Owner Financing Terms

[Matthew Parent]

Hello. I’ll try to be as concise as possible. This post will come with a few questions. Please answer all or just one part if you have a moment. Thank you in advance for your help.

My wife and I would like to buy a house. I am very new at this. There is an old, colonial antique house I really like that I would love to polish up. This home could be my dream home if it’s polished up.

I won’t qualify for conventional mortgages due to my job (although my job is quite secure with good income. And I own a condo now I can rent out). Thanks to BP (and other sources) I might inquire about seller financing. It never hurts to ask. Yet seller financing is a topic I sort of understand but I want to be sure I truly know the whole picture in detail.

House listed for 350k. I don’t have much. But maybe I can offer the seller a higher price. Im trying to get creative. So I’m thinking I offer 375k on seller financing with a 5-7 year balloon payment due where I’ll cash him/her out.

If he/she accepts, I'm making payments to seller. I do some work. Fix it up. "BRRR"; In 5-7 years, I have it appraised again and go for a conventional loan. At that time, I'll pay the seller off in full.

1 is that the general idea of seller financing? And I pay all future taxes and maintenance.

2) would the payments I make to seller be deducted from the 375k sale price? Only owning the remaining balance of that loan?

3) The offer should still go through the listing agent? To honor their agency and make sure the listing agent gets paid appropriately.

More disclosures. The house has been listed for 6 months with a few price reductions. Which is why I’m hoping the seller will get creative with me.

On the MLS, it's disclosed that the listing agent has an ownership interest in the property. Makes me a bit nervous.

Thanks again. All tips welcome.