eForms Logo

Seller Financing Addendum to Purchase Agreement

A seller financing addendum outlines the terms under which the seller of a property agrees to loan money to the buyer to purchase their property. The seller agrees to take either a first or second mortgage on the property at an agreed-upon interest rate, with payments made either every month or in a balloon payment at the end of the term.
PDF
Word
ODT
4.8 Stars | 201 Ratings
Downloads: 3,316

Types of Seller Financing (4)

  1. Fixed Rate: An amortized loan with an interest rate that doesn’t change for the term of the loan, commonly for 20 to 30 years.
  2. Balloon Mortgage: Type of loan that is commonly amortized for a longer period but the remaining balance is due within 5 to 10 years.
  3. Interest Only: Buyer only makes payments on the interest accruing with the principal balance due on a later date.
  4. Adjustable Rate Mortgage: The buyer pays the interest rate that is updated periodically based on the SOFR (Secured Overnight Financing Rate) provided by the Federal Reserve.

Attaching to Purchase Agreement

Once complete, this addendum should be signed and attached to the purchase agreement made between the parties.

Video

Sample

Download: PDF, MS Word, ODT