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s mortgage rates climb, seller‑financing has surged, especially in upscale markets. In early 2025, Carson Austin listed a 4,600‑sq‑ft Georgetown, Texas home for $1.6 million. With rates near 7 %, the property lingered on the market. Austin opted for seller financing, keeping the price but offering a 4 % interest rate on a six‑year loan with a 35 % down payment. Within two days, a buyer accepted, and the sale closed shortly after. Austin worked with MORE Seller Financing to vet the buyer and structure the deal. He said the lower rate was the decisive factor.

    Seller financing, once popular in the 1970s and 1980s during high‑rate periods, had a tainted reputation for exploiting low‑income buyers. Federal regulators warned against high rates on low‑quality homes. Yet since 2022, as rates have risen again, the model has re‑emerged, now mainly in higher‑end transactions. Realtor.com reports an 8 % rise in dollar volume of seller‑financed sales, exceeding $30 billion between 2023 and 2024. Joel Berner, a senior economist at Realtor.com, notes the median price of seller‑financed homes now matches the broader market, indicating a shift toward more expensive properties.

    The appeal lies in below‑market rates and a bridge loan that gives buyers time to secure a conventional mortgage when rates fall. Sellers gain a competitive edge and earn interest income. Ryan Leahy, founder of MORE Seller Financing, says the arrangement can be a win‑win: sellers preserve equity and receive predictable income, while buyers enjoy lower payments. However, Leahy cautions that improper structuring can expose both parties to legal and financial risks. His firm educates clients, ensures compliance, and connects them with mortgage originators, attorneys, title companies, and servicers.

    Seller financing remains niche; fewer than 1 % of listings mention private financing. MORE typically handles homes valued between $800 k and $3 M. Sellers usually hold substantial equity and liquidity, allowing them to defer full cash receipt for several years. Buyers are often self‑employed or have unconventional income streams—such as influencer, crypto, or side‑hustle earnings—that make traditional mortgage qualification difficult. Leahy notes that many self‑employed buyers prefer to keep their cash liquid for investment opportunities rather than pay a high mortgage rate outright.

    James S., a client of MORE, sold his 5,200‑sq‑ft Austin, Texas home for $2.9 million in January 2025. He offered a three‑year loan at 5.5 % interest. The buyer chose seller financing to avoid a large cash outlay and instead invest the money elsewhere. The buyer now lives in furnished short‑term rentals in California while the mortgage is paid down and a modest monthly income is generated.

    In summary, rising mortgage rates have revived seller financing, especially in luxury markets. While the model offers benefits to both buyers and sellers, it requires careful structuring and professional guidance to mitigate risks.