The Homeowner's Guide to Seller Financing

Your home built your life. Now let it fund your next chapter.

For Homeowners
honestdeed.com

$14.66T Senior home equity in America

197K Deals that collapse from financing failure annually

$300K+ More total return vs. traditional sale (on a $450K home)

The Math That Changes Everything

Your home: $450K value, $200K cost basis, 20% down payment ($90K), 7% interest rate, 25-year amortization / 20-year balloon.
Traditional sale net: $399,000 — after $37,500 capital gains tax + $13,500 closing costs.
Seller financed total return: ~$701,960
The difference: $302,960 more.
You receive: $90,000 at closing + $2,544/month for 20 years.
Tax advantage: Capital gains spread over 20 years instead of all in year 1.

Reverse Mortgage vs. Seller Financing

	Reverse Mortgage	Seller Financing
Your equity	Depletes over time	Converts to monthly income
Monthly cash flow	No — debt grows	$2,544/mo
Closing costs	Up to $6,000 + ongoing MIP	Minimal
Your heirs get	Depleted asset or foreclosure risk	Performing note generating income
Tax benefit	None	Installment sale spreads capital gains

Who Qualifies as Your Buyer?

☑ Self-employed / 1099 income

☑ Small business owners

☑ Foreign nationals

☑ Recently relocated buyers

☑ Buyers in areas banks avoid (rural, mixed-use)

☑ Anyone with real income but not bank approval

How It Works + Your Questions Answered

Page 2 • The Homeowner's Guide to Seller Financing

How Seller Financing Works

Step 1 — Agree on terms

You and the buyer agree on sale price, down payment, interest rate, and term. HonestDeed guides you with sensible defaults.

Step 2 — Buyer is vetted

HonestDeed verifies the buyer's identity and financial health before you commit. You see a complete buyer profile.

Step 3 — Sign and close

HonestDeed prepares IRS-compliant documentation — promissory note, deed of trust, required disclosures. Closing in days, not months.

Step 4 — Collect income

Buyer makes monthly payments through the platform. HonestDeed monitors buyer financial health quarterly and provides ongoing transparency.

5 Questions Every Homeowner Asks

"What if the buyer stops paying?"

A deed of trust secures the property — same instrument banks use. If the buyer defaults, the property reverts to you.

"Do I have to move?"

Yes, you sell the home. But you fund your next chapter with $90K+ at closing plus $2,544/month in income.

"What about taxes?"

IRS Section 453 installment sale spreads your capital gains over the note's life. Plus, the $250K/$500K homeowner exclusion may reduce or eliminate the gain entirely.

"What do my kids inherit?"

A performing note that keeps paying monthly income — not a reverse mortgage that depleted the equity. They can collect payments or sell the note on the marketplace.

"Is this legal and safe?"

Seller financing is IRS-recognized. HonestDeed handles Dodd-Frank compliance, TILA disclosures, and AFR requirements. Buyer is vetted before you sign.

Run the numbers on your home.

📊 honestdeed.com/calculator 📞 877-870-2899 ✉ support@honestdeed.com