Seller's guide · 2026
How owner financing works in Texas — a seller's guide
Owner financing, also called seller financing, is you acting as the lender so the buyer can purchase without a bank. You keep a note secured by a deed of trust. We supply the paperwork, a 48-hour call, and optional servicing so you are not the collector.
ART. I — DOCUMENTS
Standardized paperwork
Promissory note, deed of trust, and the TREC seller-financing addendum, prepared from your deal terms. Attorney review available by referral.
ART. II — CLOSING
Escrow & notary
We coordinate escrow through a partner title company and dispatch a mobile notary. Filings and any entity formation are handled with our referral network.
ART. III — SERVICING
We become the point of contact
From the day of closing, the buyer pays us, not you. We collect, remit, keep the ledger, send statements, and pursue delinquencies — with anonymity for you.
ART. IV — PAYOFF
Refinance, payoff, or sell the note
At the balloon, the buyer refinances and you are cashed out. Or hold a standardized, well-papered note — the kind a secondary market can actually price.
TREC 26-8 is the anchor
The purchase contract already has a box for the Seller Financing Addendum (TREC 26-8). Paragraph C chooses the payment structure. Paragraph D chooses transfers, insurance, escrow, and prior liens. Our note and deed reprint those elections so the recorded set matches what the agent negotiated. We never host the TREC form itself.
Occupancy, the SAFE Act, and Dodd-Frank
If the buyer will live in the house, originator rules and balloon limits may apply. Investment occupancy is a different analysis. We flag owner-occupied deals; we do not block document generation. Your attorney call is where that gets decided.
Texas Property Code §51.002
A deed of trust supporting an owner-financed note typically allows non-judicial foreclosure after the statutory notices. That speed is one reason Texas sellers consider carrying paper instead of cutting price for a cash buyer.
Installment-sale tax deferral
Spreading principal over years can defer gain relative to an all-cash closing. That is tax, not legal, advice — bring your CPA. For many sellers, keeping full price with a modest rate beats a discounted cash sale.
Next: run the calculator, see the form set, read the contract anatomy, or compare servicing.
Is owner financing legal in Texas?
Yes. Owner financing — called seller financing on TREC forms — is a long-established way to sell Texas real estate. Owner-occupied deals can trigger SAFE Act and Dodd-Frank rules; investment deals are treated differently. Have counsel review occupancy before you sign.
How does foreclosure work if the buyer defaults?
A Texas deed of trust typically allows non-judicial foreclosure under Property Code §51.002 — faster than judicial foreclosure in many states. Referred counsel handles the notices. You keep the down payment and can recover title.