Which type of commission structure does a seller carry back when financing in excess of $100,000?

A seller carry back, also known as seller financing, occurs when a seller provides a loan to the buyer to help them purchase the property. This arrangement allows the buyer to make payments directly to the seller rather than securing a traditional mortgage through a lender. When financing exceeds $100,000, this type of commission structure is particularly relevant because it creates flexibility in transaction negotiations, enabling buyers who might struggle with conventional financing to still purchase properties.

The seller can receive regular payments from the buyer and may even command a higher interest rate than typical mortgage lenders would offer. This method also facilitates quicker sales since it circumvents some of the stringent requirements set by banks and other lending institutions. Thus, seller financing becomes beneficial for both parties: the seller maintains a steady income through the buyer’s payments, and the buyer gains access to funding that may not otherwise be available through traditional means.

While conventional, VA, and FHA loans involve third-party lenders and have specific criteria, the seller financing structure is unique in that it relies entirely on the seller and buyer’s agreement, making it an appropriate answer for the scenario presented in the question.