are there tax implications for owner financing 
both buyers and sellers should be aware of the tax implications of owner financing sellers may need to report interest income while buyers might be eligible for certain tax deductions related to mortgage interest if you are considering entering an owner financing engagement consult your tax advisor can owner financing include a down payment yes owner financing often includes a down payment typically negotiated between the buyer and seller the down payment helps reduce the amount financed and provides security for the seller can owner financing be transferred to a third party in some cases owner financing can be transferred to a third party subject to the terms of the original agreement and approval from the seller the bottom lineowner financing is a real estate arrangement where the property seller acts as the lender offering direct financing to the buyer instead of obtaining a mortgage from a bank the buyer makes regular payments to the seller until the property is fully paid off this alternative financing option can benefit buyers with limited access to traditional mortgages and sellers seeking a broader pool of potential buyers 