Owner-Financed Homes in Tennessee: A 2025 Guide to Buying Without a Bank

If you're dreaming of homeownership in Tennessee but struggling to get a mortgage, you're not alone. Fortunately, owner financing—also known as seller financing—is helping more Tennesseans buy homes without going through a bank. In this 2025 guide, we'll walk you through how it works and why it's an attractive option.

Owner Finance homes in Tennessee can be hard to find. But websites like SEPFinancing.com can provide you with multiple options for seller financing or rent to own homes!

What Is Owner Financing? Owner financing is when the home seller finances the purchase directly, allowing the buyer to make monthly payments over time. There's no need for a traditional mortgage or bank approval.

Benefits of Owner Financing in TN:

• Easier approval for buyers with poor or no credit

• Faster closing timelines

• Flexible terms

• No bank fees or underwriting delays

Common Owner Financing Terms in Tennessee:

• Down payment: 5%-20%

• Interest rate: 7%-10%

• Loan term: 10-30 years

• Balloon payments: Sometimes required after 3-5 years, although this is not common practice anymore.

Where to Find Owner-Financed Homes: Sites like SEPFinancing.com specialize in FSBO (for sale by owner) homes across Tennessee where the seller is willing to finance the purchase. From Nashville to Clarksville and beyond, there are options in all price ranges.

To view all of the homes for sale with owner financing in Tennessee, visit our sales page, SEPFinancing.com/buy.