Thinking about selling your land on owner financing? This calculator shows your buyer's monthly payment, what you collect if you hold the note, and what you could get at closing if you sell the note to us instead.
Owner financing calculator
Principal and interest only, no taxes or insurance. Cash at closing is the down payment plus 80% to 90% of the note balance, our usual range for notes that meet our buying criteria. Your real bid depends on the land, the buyer, and the terms. This is an estimate, not an offer.
How do I calculate an owner financing payment?
Use a standard loan payment: the note balance, rate, and term set the monthly payment.
Subtract the down payment from the price to get the note balance. The payment pays interest first and principal over the term. On $80,000 at 10.9% for 8 years, the buyer pays about $1,252 a month. Enter your own numbers above, or change one input at a time to see what moves the payment.
What terms should I use to sell land on owner financing?
If you want to sell the note, we recommend 20% down, 10.9%, and an 8 year term.
| Term | Our recommendation |
|---|---|
| Down payment | 20% or more |
| Interest rate | 10.9% |
| Term | 8 years |
| Loan fee and servicing | $500 loan fee and $25 a month servicing, paid by the buyer |
| Prepayment penalty | None |
More down means a bigger payout. Notes with 30% or more down get closer to 90% of the balance. See the full playbook in seller financed land deal terms.
Should I hold the note or sell it?
Hold it for monthly income, or sell it for cash now to buy your next deal.
Holding pays you the most dollars over time, but your cash is tied up for years and you carry the default risk. Selling at closing gets you most of the price right away. On a $100,000 sale with $20,000 down, we would buy the $80,000 note for about $68,000, so you walk away with about $88,000 at closing.
Rule of thumb: if you have another deal to buy, cash today usually beats payments over 8 years. More in hold or sell your land note.
Which land qualifies for a note sale?
Most rural and residential land with access, no flood zone, and a note of $25,000 or more.
We buy promissory notes secured by a deed of trust or mortgage, not land contracts. The property must be worth $50,000 or more, with legal access and no major wetlands or flood zone, and not in CA, HI, LA, MD, NJ, NY, or PA. Check yours on which land qualifies.
What is my existing note worth?
Use the note value calculator for a note you already hold.
This calculator is for planning a sale. If you already have a note with payments coming in, use the note value calculator or submit your note for a bid within 24 hours.
Frequently Asked Questions
How do you calculate an owner financing payment on land?
Subtract the down payment from the price to get the note balance, then use the rate and term in a standard loan payment. $80,000 at 10.9% for 8 years is about $1,252 a month.
What interest rate should I charge on owner financed land?
If you plan to sell the note, we recommend 10.9% with 20% or more down and an 8 year term.
How much cash can I get at closing if I sell the note?
Your down payment plus 80% to 90% of the note balance, for notes that meet our criteria. A $100,000 sale with $20,000 down nets about $88,000.
Do you buy land contracts?
No. We buy promissory notes secured by a deed of trust or mortgage only.