Seller Financing in Arizona: When It Makes Sense and How It Works

Seller Financing in Arizona: When It Makes Sense and How It Works

Seller financing is when you, the home seller, act as the bank – accepting monthly payments from the buyer instead of a lump-sum cash close. In Arizona’s current market, seller financing can let you sell at full price (or above), generate monthly income, defer capital gains, and close in days instead of months. Carlie Tomaszewski has bought and sold dozens of properties with seller financing structures – wraparound mortgages, all-cash-to-existing-loan, and lease-option contracts. This isn’t theoretical creative finance, it’s her day job. Here’s what every Phoenix-area seller should know before saying yes – or no – to a seller-finance offer.

Get a free seller-financing analysis: Call (480) 237-5445 or use the contact form below.

Seller financing in plain English

You sell your home to a buyer, but instead of the buyer paying cash (typically through a bank loan), the buyer pays YOU monthly – with interest – over an agreed period. Common structures: 5-30 years, with interest rates of 6-9% in 2026, and a balloon payment at year 5-7 (so the buyer eventually refinances or sells).

Why sellers love it: Sell at full asking price (or above), defer capital gains across multiple tax years, generate passive monthly income, often close in 7-30 days instead of waiting for traditional bank financing.

Why buyers love it: Don’t need to qualify with a bank, smaller down payment, faster close, sometimes lower rate than current market mortgages.

When seller financing works for YOU

  • Your mortgage is paid off (or close to it). Easier to structure when there’s minimal existing debt to navigate.
  • You don’t need lump-sum cash for your next move. The whole point is steady monthly income, not a big check.
  • You’d value 6-9% interest income. That’s better than most CDs, bonds, or savings accounts.
  • Your home has been sitting on the MLS. Seller financing expands your buyer pool to people banks rejected.
  • You’re open to creative deal structures. Not everyone is, and that’s fine.

When seller financing DOESN’T work

  • You need lump-sum cash for your next purchase. Can’t put a down payment with monthly checks.
  • You’re not comfortable being a creditor. The buyer could default; you’d need to foreclose.
  • Your existing mortgage has a strict due-on-sale clause that the lender enforces.
  • The buyer’s down payment is too small to protect you against default.

The 3 main seller-financing structures Carlie uses

1. Straight seller carryback (free-and-clear properties)

If your mortgage is paid off, you become the bank directly. Buyer signs a promissory note + deed of trust to you. Cleanest structure. Typical terms: 10-20% down, 6-8% interest, 5-7 year balloon, 30-year amortization.

2. Wraparound mortgage (existing loan stays in place)

You have an existing low-rate mortgage that’s worth keeping. The buyer’s payment to you covers your existing mortgage payment + your spread. Structured properly, this can be highly profitable AND legal – but needs careful handling of the due-on-sale clause.

3. Lease option / rent-to-own

Buyer rents the home with an option to buy at a fixed price within 1-3 years. Rent credits go toward purchase. Lower commitment for both sides; higher monthly payment from buyer.

How Carlie helps

Carlie is a Phoenix-based real estate investor who personally owns 40+ rental properties and buys with seller financing structures every month. Two paths:

  • Carlie buys YOUR property. If your situation fits her investment criteria, she may make a direct seller-finance offer – typically at or near asking price, with terms structured to net you more than a traditional sale would.
  • Carlie finds the buyer. If Carlie’s not the right buyer, she has an active investor network constantly looking for seller-financed acquisitions. She’ll structure the deal, vet the buyer’s track record + down payment, document it properly, and close in 7-30 days.

Frequently asked questions

What interest rate should I charge?

Typically 1-2% above current 30-year mortgage rates. In April 2026, that’s roughly 7-9%. Higher rate compensates you for the risk of being the bank.

What if the buyer stops paying?

Same remedy as a bank: foreclose. In Arizona, this typically takes 90-120 days. You get the property back – plus you keep all payments made to date AND the down payment. Properly structured deals make this risk manageable.

What about my existing mortgage’s “due on sale” clause?

Real concern, but manageable. Some structures (wraparounds) keep your name on the original mortgage; the lender CAN call the loan if they discover the sale, but most don’t if payments are current. Other structures (subject-to, lease option) avoid the trigger entirely. Carlie will explain which structure fits your specific mortgage.

Do I need a real estate attorney?

Yes – always. Carlie works with experienced Arizona real estate attorneys who draft seller-finance documents regularly. Cost: typically $1,500-$3,500. Cheap insurance for a 5-30 year financial relationship.

How does this affect my taxes?

Installment sales spread your capital gains across years (you only pay tax on the principal received each year), which often saves significant tax vs. a traditional sale. Combined with the interest income (taxed at ordinary rates), seller financing is often more tax-efficient. CPA consultation strongly recommended.

Has Carlie really done this before?

Yes – dozens of times. Carlie buys properties for her own portfolio with seller financing structures regularly. This isn’t theoretical knowledge from a book; it’s how she’s built her own 40+ property portfolio.

Get a free seller-financing analysis

The 30-minute analysis tells you exactly what seller financing would net you (vs. a traditional sale at a price-cut), which structure fits your specific mortgage, and whether Carlie or her investor network is the right buyer. No obligation. Call (480) 237-5445 or use the contact form.

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