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  • Randy Rodenhouse

Seller finance market size

This is a 30,000 foot view of the seller financing real estate market in the USA. First a refresher for those who are not super clear on what is meant by seller financing...also known as owner financing or seller carry. Seller financing is a type of real estate transaction in which the seller provides financing to the buyer, rather than the buyer obtaining a traditional mortgage from a bank or other lender. This means that the seller acts as the lender and the buyer makes payments to the seller, rather than a bank. This can be a useful option for buyers who may not qualify for a traditional mortgage, or for sellers who want to move their property quickly and are willing to provide financing to the buyer as an incentive. Top 3 States For Seller Financing: TX, CA, and FL. Texas usually comes out on top. Who creates the notes: 84% create 1 note per year and 16% create 2 or more. So lot of "mom and pop" notes. Dollar Volume/year: Total (residential and commercial) around $27 Billion of which approx $14-15 billion is residential real estate. Volume has increased in recent years and I think it will increase even more so now due to higher interest rates and people unable to qualify for traditional mortgages. See chart below (data sourced from ASDS).

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Top states for seller financing


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