Seller carryback notes (also known as seller financing or owner financing) are a type of real estate financing in which the seller of a property agrees to provide financing to the buyer rather than requiring the buyer to obtain a traditional mortgage loan from a bank or other financial institution.

In a seller carryback transaction, the buyer typically makes a down payment to the seller and signs a promissory note for the balance of the purchase price. The seller then acts as the lender and receives payments from the buyer, usually with interest, over a predetermined period of time.

Seller carryback notes are often used when a buyer cannot obtain traditional financing due to a lack of credit, a low credit score, or an inability to meet other loan requirements. They can also be used when a buyer wants to avoid the high costs associated with obtaining a traditional mortgage loan, such as loan origination fees, closing costs, and appraisal fees.
Seller carryback notes can be beneficial for both the buyer and the seller. Buyers may be able to purchase a property that they otherwise could not afford, and sellers may be able to sell their property more quickly and receive a higher price than they would have received in a traditional sale. However, seller carryback notes can also carry risks for both parties, such as the possibility of default or the property losing value over time. It is important for both parties to carefully consider the terms of the agreement and to seek professional advice before entering into a seller carryback transaction.