Instead of getting a mortgage from a bank, you make monthly payments directly to the seller.

You lease the home for a set period with the legal option to buy it at a predetermined price later.

You get the seller’s (likely lower) interest rate without needing to qualify for a new loan.

Sellers who own their home free and clear and want a steady monthly income (interest) without the hassle of property management. 2. Subject-To (Taking Over Payments)

"Fixer-uppers" where the home’s condition prevents a traditional bank from lending on it. The Bottom Line