What is seller financing? why should it be used? Well, in short, seller financing is simply an agreement in real estate in which the seller of the property acts as the mortgage lender for the buyer instead of a traditional bank or financing institution.  This can be a valuable tool for both the buyer and seller. Especially in tight credit markets where supply is outdoing demand. Usually this means traditional financing, such as a conventional mortgage, FHA, or other loan programs are unavailable to the buyer.  So what is a buyer and seller supposed to do in these situations? Well,