Seller Financing Addendum

Seller Financing Addendum

Last updated April 19th, 2023

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A seller financing addendum defines the terms for how a seller finances a buyer’s real estate purchase. It is added to the original purchase agreement to establish details such as the type of financing (e.g., balloon mortgage, adjustable rate mortgage, amortized loan), interest rate, and other relevant terms. Seller financing is also referred to as “owner financing” or a “purchase-money mortgage.”


By Type (2)

Standard Seller Financing Addendum – Allows a real estate buyer to receive financing from the property seller.

Download: PDFWord (.docx)OpenDocument


TREC Seller Financing Addendum – Provided by the TREC to add seller-financing terms to a purchase agreement.

Download: PDF



Download: PDF, Word (.docx), OpenDocument


1. THE PARTIES. This Seller Financing Addendum (“Addendum”) made this [MM/DD/YYYY] is by and between:

Seller: [SELLER’S NAME] (“Seller”) and

Buyer: [BUYER’S NAME] (“Buyer”).

The Seller and Buyer are each referred to herein as a “Party” and, collectively, as the “Parties.”

2. ORIGINAL AGREEMENT. This Addendum is being added to the purchase agreement between the Parties, dated [MM/DD/YYYY], for the property located at [PROPERTY ADDRESS] (“Original Agreement”).

5. SELLER’S APPROVAL. The Seller shall deliver a written notice to the Buyer within [DAYS] days if their credit information is approved or rejected. If no written notice is delivered, the Buyer shall be considered approved for the Seller’s financing under the terms of this Addendum. If the Buyer’s credit information is rejected by the Seller, any earnest money deposited as part of the Original Agreement shall be returned to the Buyer unless otherwise stated.

6. FINANCING TERMS. The Seller’s financing terms shall be: (check one)

Amortized Loan. The loan will be fully amortized for a term of: (check one)

[MONTHS] Months
[YEARS] Years

Interest Only. An interest-only mortgage loan that complies with the requirements of the Dodd-Frank legislation and requires monthly payments with the entire principal balance and accrued interest due in full on [MM/DD/YYYY].

Balloon Mortgage. A balloon mortgage that complies with the requirements of the Dodd-Frank legislation and is initially amortized for a term of: (check one)

[MONTHS] Months
[YEARS] Years

Adjustable-Rate Mortgage. An adjustable-rate mortgage loan that shall be for a term of: (check one)

[MONTHS] Months
[YEARS] Years

4. EXECUTION. This Addendum may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Seller’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [SELLER’S NAME]

Buyer’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [BUYER’S NAME]