Owner Finance Homes in Tennessee: Your Guide to Buying Without the Bank
- willbaugher
- Sep 18
- 3 min read
Buying a home in Tennessee can feel impossible if the bank says “no.” That’s why we created SEPFinancing.com — where you can see homes for sale with owner financing right here in Tennessee. Whether you’re self-employed, rebuilding credit, or just want a faster way to buy, this guide will show you how owner financing works and connect you with homes available today.
What Is Owner Financing?
Owner financing (sometimes called “seller financing”) is when the person selling the home acts as the lender. Instead of borrowing from a bank, you make payments directly to the seller under agreed-upon terms.
You move in now – no waiting months for a loan approval.
Flexible terms – every deal can be structured differently.
Less red tape – fewer fees, faster closings.
FAQ: Is owner financing legal in Tennessee? Yes. Owner financing is perfectly legal in Tennessee as long as the proper contracts and disclosures are used.
How Owner Financing Works in Tennessee
Every state has its quirks, and Tennessee is no different. Here’s what you need to know:
Down Payment – Most sellers require a down payment (often 10–20%).
Promissory Note & Deed of Trust – These documents protect both buyer and seller.
Monthly Payments – Payments usually include principal and interest, just like a mortgage.
Wrap Mortgages & Contracts for Deed – These are common structures in Tennessee. Each has pros and cons, so work with someone experienced.
💡 Pro Tip: Interest rates on owner finance deals can vary. Always ask how payments are calculated before signing.
Advantages of Buying an Owner Finance Home in TN
No Bank Approval Needed – Great for self-employed buyers or those rebuilding credit.
Fast Closings – Move in within days, not months.
Build Equity – Unlike renting, your payments go toward owning your home.
Comparison at a glance:
Option | Credit Check? | Who You Pay | Can You Build Equity? |
Bank Mortgage | Yes | Bank | Yes |
Rent-to-Own | Sometimes | Landlord | Maybe |
Owner Financing | No | Seller | Yes |
Where to Find Owner Financed Homes in Tennessee
At SEP Financing, we specialize in connecting buyers with real homes available on owner finance terms. Here are some of our current listings:
Clarksville, TN – 577 Matthew Ct
Goodlettsville, TN – 111 Brockhampton Ct
Dover, TN – 119 Wynns Ferry Rd
Steps to Buy an Owner Financed Home in TN
Search listings – Find a property that works for you.
Review the terms – Look at down payment, monthly payment, and length of agreement.
Sign the paperwork – Typically includes a purchase agreement and promissory note.
Get the keys & move in!
Common Questions About Owner Financing in Tennessee
Do I need good credit? No. Many sellers focus on your ability to make the down payment and monthly payments (some sellers do check credit, more common in rent to own).
How much down payment is typical? Every property is different, but 10–20% is common in Tennessee.
Can I refinance later with a bank? Yes! Many buyers use owner financing as a “bridge” until they qualify for a traditional loan. Be sure to verify if there is a balloon or prepayment penalty with the owner finance seller.
Final Thoughts
If you’ve been searching Google for “Owner Finance Home in Tennessee”, you’re in the right place. Owner financing is a smart way to buy a home without jumping through bank hoops, and SEP Financing makes the process straightforward.
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