How to Find Owner-Financed Homes in TN: Listings, Steps & Tips

willbaugher
Aug 29
2 min read

Why owner financing is popular in Tennessee

Easier approval vs. banks, faster closings, and flexible terms fit self-employed buyers and credit-rebuilding families.
Hot TN markets (Nashville, Franklin, Murfreesboro, Knoxville, Chattanooga, Memphis, Clarksville) still have sellers open to creative terms.

Where to look (and what to type)

SEPFinancing.com: Browse active TN owner-financed and rent-to-own listings. First look for the state and then the city closest to where you want to live and see what options are available to you right away!
Facebook + Craigslist: Use queries like "owner financing", "owner will carry", "seller financing", "wrap mortgage", "rent to own", “lease-option”, "no bank", plus your city.
Local investor groups/REI meetups: Many small landlords and flippers prefer a steady note payment over a one-time sale.
FSBO marketplaces: Filter for “owner financing available” and message sellers directly with professional, ready-to-close wording (see script below).

Winning script to message a seller

Hi! I’m ready to buy in [City, TN] with [X]% down on a [price range] home. I’m looking for owner financing and I make more than 3x what the monthly payment should be. I can provide income docs and close quickly for the right house. Yours seems like what I'm looking for. When can I see it?

Steps to secure the deal

Get your numbers ready: Down payment, comfortable monthly payment, and max price based on taxes/insurance.
Prepare documents: ID, proof of income, rental history, references, and proof of funds for the down payment.
Start with the basics: Price, down payment, interest, term, balloon (if any), escrow for taxes/insurance, who services the loan.
Use a TN-savvy title/closing company: Make sure they record the deed and lien correctly and check for judgments or HOA liens.
Insure properly: Use the right policy type and list any lender clauses correctly to avoid issues.
Get everything in writing: Use clear purchase and financing documents. (SEPFinancing can point you to TN-friendly pros.)

Red flags to avoid

Unrecorded deals (no deed or lien recorded).
No escrow for taxes/insurance—you risk lapsed coverage or tax sale. Taxes and insurance should be escrowed OR you should pay them directly yourself.
Vague payoff/balloon terms—always know due dates and penalties. This should be in writing!
Title issues—judgments, code liens, or HOA arrears can follow the property. Working with a professional title company will help prevent these issues and purchasing title insurance will protect you in the future.

What to bring to the first showing

Proof of funds for the down payment
A simple “buyer intro” one-pager (income, work, timeline)
List of questions: roof/HVAC age, utilities, taxes/HOA, any recent permits, flood zone

FAQ (short)

Can I qualify with past credit issues? Yes—sellers weigh income, down payment, and stability more than scores. What down payment is typical? Often 10–20% in TN; more can unlock better terms (depends on the seller and your negotiating abilities). Can taxes/insurance be included? Yes—ask for an escrow account.

Ready to buy with seller finance terms? Browse owner-financed homes on SEPFinancing.com/buy and message us to get pre-screened and matched with TN sellers.