What's a balloon payment and should it scare me?

It means the note comes due in full on a set date — often five to seven years out — even though the payment was calculated over a much longer schedule. It shouldn't scare you, but it should be planned for: the assumption is that you refinance into a conventional loan or sell before that date. The risk is arriving at the date without having repaired whatever kept you out of a bank loan in the first place. If a balloon is in your terms, we build the exit plan at the same time.

How do I find sellers willing to do this?

Mostly you don't find them by searching — very few listings advertise it, and the ones that do are often the worst deals. It comes from asking the right sellers directly, which is what I do: sellers who own free and clear, sellers whose homes have sat, estates, and landlords who'd rather have income than a lump sum. Tell me what you're looking for and I'll go ask.

Way to Buy

Buy a Home When the Seller Carries the Financing

Some sellers will carry the financing themselves instead of sending you to a bank — which matters if your income is real but hard to document the way a bank wants it documented. In a properly papered deal you take title at closing exactly as in any purchase, and the seller holds a lien the way a bank would. That is very different from a lease-purchase or a contract for deed, where you don't hold title yet, and knowing which one you're actually being offered is the whole ballgame. Expect pricing above bank terms and, on many of these notes, a balloon — so the exit plan gets built at the same time as the loan, not years later.

Browse homes for sale

Is this right for you?

The honest fit

Best for

Your income is real but hard to document the way a bank wants it — self-employed, 1099, commission, or newly established
You have a solid down payment but a credit file that doesn't reflect how you actually handle money
The home you want is unusual enough that conventional financing keeps stalling on it

Maybe not if…

You can qualify conventionally — a bank loan will almost always cost you less
You can't put down a substantial amount; sellers carrying a note expect real skin in the game
You need the lowest possible payment, since carried notes typically price above bank rates

The process

How it works

01
We find the sellers who'll actually consider it — most listings won't say so, and that's the work.
02
You get vetted the way a careful seller expects, with a licensed originator involved when the rules require one.
03
We negotiate the real terms: price, down payment, interest rate, term, and what happens at the end of it.
04
A Texas real-estate attorney papers the note and deed of trust, and you close and take title like any other buyer.

The trade

What you get — and what to weigh

What you get

A path to ownership that doesn't depend on a bank's underwriting box
You take title at closing and build equity from day one — this is a purchase, not a rental
Terms that are negotiated rather than dictated by a rate sheet
A materially faster close: no lender underwriting queue, no appraisal delay

The trade-offs (straight talk)

The interest rate is usually above bank rates — that's the seller's compensation for the risk
Many carried notes include a balloon, so you need a realistic plan to refinance or sell before it comes due
Attorney and servicing costs apply
Miss payments and you can lose the home through Texas foreclosure, same as with a bank

Typically qualifies

• A substantial down payment — sellers carrying a note typically expect meaningfully more than a bank would
• Documentable ability to make the payment, even if it isn't documented in a bank's preferred format
• Willingness to be underwritten by a person rather than an algorithm

“I work the other side of this too — I set these up for sellers carrying notes. That means I know exactly what a seller will and won't agree to, and where the terms usually get unfair to the buyer. You want somebody in the room who has papered these from both directions.”

Homes sold: 175+Homes sold
In closed sales: $54M+In closed sales
Texas markets served: 2Texas markets served
Counties served today: 6Counties served today

Career totals across two Texas markets — DFW, then Greater Houston.

Questions, answered

Frequently asked questions

You own it. In a properly papered owner-financed sale the seller deeds the home to you at closing exactly as in any purchase — your name goes on the deed, you build equity, you take the tax treatment of an owner. The seller holds a lien, the way a bank would. That is very different from a lease-purchase or contract for deed, where you don't hold title yet. Know which one you're being offered, and read the trade-offs below before you sign.

Find out if seller financing fits you

Tell me your situation honestlydown payment, income, and what's blocking a conventional loan.I'll tell you straight whether this is your path or whether you're closer to a bank loan than you think.

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Call (832) 709-2540

Not sure this is the right path? Let's figure it out together.

A quick, no-pressure conversation is all it takes.