Carry-Back Financing
Carry-back financing (a seller carry-back) is when the seller finances part or all of the purchase price themselves, receiving payments directly from the buyer instead of a lump sum at closing.
The seller effectively becomes the lender, typically secured by a promissory note and deed of trust recorded against the property. A carry-back can stand alone or sit alongside a buyer down payment or an assumed first loan.
This structure is common for land and rural parcels across Northern California, where conventional lenders often won't finance raw acreage, off-grid land, or agricultural parcels. California also imposes seller-financing disclosure requirements on certain owner-occupied 1-4 unit sales that a carry-back seller needs to follow.
Carrying back financing can widen the buyer pool, including self-employed or credit-challenged buyers, and can generate interest income over time — but it ties up sale proceeds and exposes the seller to default risk if the buyer stops paying. Compare it honestly against a straightforward cash sale, and have any note reviewed by an attorney or CPA before signing.
Need Personalized Help?
Every situation is different. Get a free, no-obligation consultation and cash offer for your specific property.