Seller Financing in Florida — Free & Clear Properties
If you own your home free and clear (no mortgage) and want a faster sale, more buyers, or monthly income, seller financing—also called owner financing—can be a great fit in Florida . You act as the lender: the buyer makes a down payment now and monthly payments to you over time, secured by the property.
What is seller financing when there’s no mortgage?
- You transfer title to the buyer at closing.
- The buyer signs a promissory note and a mortgage/deed of trust (or contract for deed/land contract where used).
- You receive a down payment + monthly payments with interest.
- If the buyer defaults, your security instrument allows legal remedies per state law.
- No underlying bank loan means no due-on-sale risk and simpler paperwork than wrap or subject-to structures.
When this helps sellers (common use cases)
- Maximize price in a tight credit market — trade terms for price.
- Create predictable income — convert equity into a monthly stream.
- Sell “as-is” — attract buyers comfortable with repairs because terms are available.
- Tax planning — potential to spread gains via the installment method (talk with your tax pro).
- Faster closing — fewer lender delays and appraisals.
Typical deal structures (free & clear)
- Full Carry (classic owner finance)
- You finance most or all of the price.
- Terms to define: price, down payment, interest rate, amortization or interest-only, balloon date, late fee, prepayment language, escrows for taxes/insurance.
- Partial Carry (gap financing)
- Buyer brings a bigger down payment or small bank loan; you carry the remainder to bridge the gap and speed closing.
In Florida , we’ll model both so you can compare cash today vs. income over time.
Step-by-step: how the sale works
- Numbers & underwriting: Confirm taxes, insurance, HOA (if any), and realistic market value.
- Deal design: Choose Full or Partial Carry; set down, rate, payment, amortization, balloon.
- Docs & closing: Title/attorney prepares Note, Mortgage/Deed of Trust (or Land Contract), Seller Disclosure, and closing statements.
- Servicing: Set up a payment servicer/escrow to collect monthly payments, manage tax/insurance, and issue year-end statements.
- After closing: You receive monthly income; buyer maintains the property and insurance per the agreement.
Benefits for sellers
- Bigger buyer pool & faster offers
- Monthly income + interest (often higher total proceeds than a cash discount)
- As-is sale with fewer repair concessions
- You choose the balloon date and terms
Benefits for buyers
- Easier qualification and quicker closing
- Flexible terms suited to renovation or unique property situations
Risks & realities (transparent view)
- Default risk: If the buyer stops paying, you’ll need to enforce remedies per state law.
- Servicing discipline: Keep taxes/insurance current through a servicer to avoid lapses.
- Regulatory items: For owner-occupied buyers, Dodd-Frank/SAFE-Act and state laws may apply—use qualified counsel and licensed parties.
- Valuation: Price realistically; terms help, but markets still price condition and location.
We close through reputable title/attorney offices and can coordinate neutral servicing so you’re protected and paid on time.
Seller financing vs. other exits (free & clear)
| Option | Speed | Price Flexibility | Cash Today | Income | Best When |
|---|---|---|---|---|---|
| Seller Financing (Full Carry) | Fast–Med | High | Down | ✔️ Monthly | Want income + broad buyer pool |
| Partial Carry | Fast–Med | Med–High | Down + some | ✔️ Smaller | Bridge appraisal/financing gaps |
| Cash Sale | Fast | Low–Med | All | ✖️ | Need immediate lump sum |
| List on MLS | Med | Market-driven | At close | ✖️ | Condition strong; time flexible |
FAQs
Q: How big should the down payment be?
A: Enough to show commitment and protect you—often 10–30% depending on price/credit/condition.
Q: Can I charge a prepayment penalty?
A: You can set terms within state law; many sellers allow prepay with a small fee or none at all.
Q: Who handles the monthly payment and escrows?
A: A professional servicing company that drafts payments, pays taxes/insurance, and issues statements.
Q: What about taxes on my gain?
A: Ask your CPA about the installment sale method (IRC §453) and interest income reporting.
Next steps
- Share the property address and any HOA/insurance details.
- We’ll propose two or three term sets (Full vs. Partial Carry) with payment and balloon options.
- You pick the structure that matches your income goals and timeline.
Call +19738321791 or submit the form to explore seller financing for your free-and-clear property in Florida .
Not legal, tax, or financial advice. Always consult qualified professionals. All closings through licensed title/attorney offices.