What type of financial support allows home buyers to make payments directly to the seller?

Seller financing is a financial arrangement where the seller of the property provides the buyer with a loan to purchase the property, allowing the buyer to make payments directly to the seller rather than going through a traditional lender or bank. It can be particularly beneficial for buyers who may have difficulty qualifying for a conventional mortgage or want to avoid the complexities of traditional financing. In this arrangement, the terms of the loan—including interest rates, repayment schedules, and potential down payments—are negotiated directly between the buyer and the seller, providing flexibility for both parties.

Other financial options mentioned, such as conventional mortgages and home equity loans, involve third-party financing institutions, where the buyer borrows money from a bank or lender to purchase a home or leverage their existing home equity. A land contract, while similar in some respects, typically transfers occupancy and may not involve a formal loan agreement but rather a contractual arrangement between the buyer and seller over time. Each of these options has distinct functions, but seller financing is the only option that allows for payments to be made directly to the seller.