Seller financing, also known as owner financing, is a method in which the seller of a property provides a loan to the buyer for the purchase of the property, as opposed to the buyer obtaining a mortgage through a third-party lender. This is often used when traditional lender financing is unavailable or less attractive.
A senior mortgage, also known as a first mortgage, refers to a loan that has priority over other loans or claims against the property in the event of default. It occupies the primary lien position on the property.
