seller financing calculator.
payment, balloon, coverage.
A seller-financed deal has no lender in it — the seller carries the paper and you pay them directly. Enter the price, the down payment, the rate, and the amortization schedule, and this owner financing calculator returns the monthly principal and interest, the balloon balance that comes due, the interest you will have paid by that date, and how far the rent covers the payment.
The seller
is the bank.
How the note is built.
Two documents do the work. A promissory note sets the amount, rate, amortization, and balloon. A mortgage or deed of trust is recorded against the property so the seller can foreclose if you stop paying. The payment math is the same amortization formula a bank uses — nothing exotic.
Why the balloon exists.
Almost no seller wants to collect payments for thirty years. So the note amortizes on a long schedule to keep the payment low, then the entire remaining balance comes due after a few years. Low payment, slow payoff — most of what you borrowed is still owed on balloon day, and you have to refinance or sell.
The mistake that ruins it.
Taking the seller's word that title is clean. Liens, judgments, unpaid taxes, and an existing mortgage with a due-on-sale clause all survive a handshake. Order title, get the payoff in writing, and close through an attorney or title company — rules vary by state, so use a real estate attorney. Same discipline any off-market deal deserves.
Before you sign the note.
Underwrite the deal
before you write the note.
Verleon AI underwrites active listings nationwide — a deal score, DSCR, comps and ARV on every property, plus skip tracing and an offer generator for the owners you want to approach directly about carrying paper.