How Are Seller Financed Mortgage Notes Priced?

Sellers Guide

Property Sale Terms

When a homebuyer makes a reasonable down payment, they're showing their commitment toward the property and often their financial discipline as a saver. Note Buyers ask about the selling price, the amount of the down payment, and it's source.

Loan Terms

Loan terms include: • Length of the Loan (shorter is better) • Interest Rate (7% - 10% or more is best) • Current Balance • Payment Amount • Balloon (is there one?) • Late fee

Property Details

Note Buyers Want To Know:  1. Type(s) of property securing         your loan.  2. Property value  3. Local market conditions  4. Is the property vacant,        tenant-occupied, or owner-       occupied?

Borrower Qualifications

A loan is only as good the borrower's ability to make payments. Note Buyers confirm credit score, payment history, and sometimes employment. 


Note Sellers are often surprised by the importance of protecting their original loan documents and keeping excellent and verifiable payment records. Both have a direct value on note values. Additionally, loan documents generated by a licensed Attorney or Title Officer are best for the value of your note.


Contact: Porch Swing Funding (833) 457-7776