How to Qualify for Owner Financing in Tennessee: Tips for Buyers

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If you are interested in buying a home for sale with owner financing in Tennessee, or seller financed home in Tennessee, then there are a few things you should know.

Buying a house with Owner Financing in Tennessee can be a tricky process. It's best to work with a reliable company to walk you through the seller finance process so you can get the keys to your new home!

Worried you won’t qualify for a traditional mortgage? Owner financing gives you a second chance. Here's how to increase your chances of qualifying with a seller in Tennessee.

What Sellers Look For:

• Steady income or self-employment history

• Reasonable down payment (5-20%)

• Willingness to provide references or credit background

• Agreement to reasonable terms (interest rate, term length, etc.)

Documents You Might Need:

• ID

• Proof of income (pay stubs, bank statements, tax returns)

• Rental history or references

• Down payment funds ready

Pro Tip: Be upfront with the seller and offer a larger down payment if you have poor credit. It shows commitment and reduces their risk.

Most owner finance homes in TN sell quickly. Being ready to take action will significantly improve your chances of getting the home before someone else does. If you do not have 5% of the purchase price to be able to use for a down payment, just be upfront and direct with the Seller about it! There are many sellers that might consider a lease option or rent to own in Tennessee. They might be hoping for someone to come and offer $40,000 down on their $400,000 home, but that doesn't mean that they wouldn't consider you if you have $10,000 as long as you qualify and have strong income.

Owner finance sellers are often very creative. So if you have the ability to pay and any amount of funds for down payment, the best thing you can do is to communicate directly with the seller and see if they will be able to approve you.

Here at SEPFinancing.com we connect buyers and sellers directly. If a seller is willing to accept your down payment, even if it is their minimum requirement, we will put you in direct communication with them. Then the two of you can work together to craft a deal that works for everyone.

To see the full list of properties available with owner financing, click HERE.