Understanding Seller Financing: Key Differences Between Lease Options and Seller Financing

When it comes to alternative financing options in real estate, lease options and seller financing are often discussed. In this blog post, we’ll explore the differences between these two approaches and highlight the significant advantages of seller financing. By understanding these distinctions, you can make an informed decision when considering your options for homeownership

Lease Options: A Renter’s Perspective

A lease option, commonly known as rent-to-own, offers the opportunity to lease a property with the option to purchase it in the future. However, it’s essential to recognize that during the lease period, you are essentially a renter. You have the right to buy the property at a predetermined price, but until that point, you do not have ownership rights. In the event that you decide not to exercise the option or are unable to qualify for a loan, you may lose the accumulated equity and have limited control over the property.

Seller Financing: A Path to Ownership:

In contrast, seller financing, as advocated by Dustin, offers a more direct route to homeownership. Through this arrangement, you proceed to the title and ownership of the property upon closing. Instead of obtaining a mortgage through a traditional lender, such as Wells Fargo or Bank of America, your mortgage is held privately. This means you have the security and benefits of being a property owner from the beginning, with the ability to build equity and enjoy the associated advantages.

Flexibility and Control with Seller Financing

One of the key advantages of seller financing is the flexibility it provides. Dustin can negotiate the terms of the financing arrangement, such as the duration of the loan, to suit your specific needs. This gives you the freedom to plan for the future, whether it’s staying in the property for a longer period or having the option to sell and unlock your equity if circumstances change. Unlike lease options, where surrendering the property often means forfeiting your investment, seller financing offers the opportunity to benefit from the proceeds of the sale.

The Importance of Proper Setup

Dustin emphasizes the critical aspect of setting up seller financing correctly. Working with the right billing company and ensuring proper documentation and payment arrangements are in place are essential to a smooth and secure transaction. This attention to detail ensures that you have the peace of mind of true ownership and control over the property.


When comparing lease options to seller financing, the differences become apparent. With seller financing, you gain the benefits of being a property owner from the start, allowing you to build equity and have greater control over your investment. The flexibility provided by seller financing, coupled with the ability to sell and keep the proceeds, sets it apart from lease options.
Contact Dustin today to learn more about the advantages of seller financing and how he can guide you through the process. With his expertise and dedication to client success, you can confidently explore the path of seller financing and make informed decisions regarding your real estate future.

Dustin Zeller is a real estate agent who specializes in helping home buyers purchase homes through seller financing. This type of financing requires a down payment, typically 10-20%, but offers more flexible requirements than traditional bank financing. Dustin Zeller has 20 years of experience in this field and can help buyers with low credit scores or those who are self-employed. You don’t need a social security number. All you need is a down payment and a desire to buy a house. Interest rates can often be better than current mortgage interest rates. Anywhere from 1 to 2% better. Dustin Zeller will put the deal together to keep you safe.

Dustin Zeller

20 Years Experience, Skilled Negotiator, Creative Financing Guru

Call Dustin