What is the term for a purchase transaction where the seller provides all or part of the financing?

In a purchase transaction where the seller provides all or part of the financing, the term used is "Seller Carry-Back." This arrangement occurs when the seller agrees to finance a portion of the purchase price, allowing the buyer to make payments directly to the seller rather than securing a traditional mortgage from a bank or lending institution.

This financing method can facilitate the sale, especially in situations where the buyer may have difficulty obtaining a loan through conventional means, enabling them to still purchase the property. The seller may offer this option to make their property more attractive to potential buyers, especially in a competitive market or when buyers face stricter lending criteria.

Other options presented represent different concepts in real estate financing. An assumable loan allows a buyer to take over the seller's existing mortgage, transferring the payment obligations but involves traditional lender approval. A secured loan is one backed by collateral, which is more general and not specific to seller financing. Rent-to-own is a leasing agreement that gives the tenant the option to purchase the property at a later date, and it does not involve any immediate financing from a seller as part of the transaction.