If you're working with a real estate agent to sell your home, you might be considering various offers; or at least hoping that's what is about to happen. You might think that a buyer will go through the normal channels of obtaining a mortgage. However, it is possible that someone may want to buy your home through seller financing. Before you automatically say no, this guide explains who the types of buyers are that typically want to go this route to purchase a home.

International Buyers

International buyers are usually interested in financing directly with the homeowner; often because they don't have strong enough credit within the United States to take a loan from a bank or other lending institution.

Consider asking for a bigger down payment and a repayment period of only a few years. This should give the buyer a chance to build U.S. credit to obtain a mortgage through typical bank financing. At the end of the term, the buyer takes out a loan for what's owed on the home and you receive that lump sum in cash.

Self-Employed Buyers

Self-employed individuals usually have a hard time providing the bank with enough information to guarantee financial stability. This isn't a problem for you in and of itself, because self-employed people can be very reliable. They just cannot meet the policies of most banks or loan offices. Many self-employed people work for several different clients, so gathering all the proof they need to prove their income is cumbersome and time consuming.

Your first thought might be that their income tax returns should prove their income, but due to the complicated nature of the Internal Revenue Service (IRS) tax code when it comes to self-employed individuals, these returns often don't show the true financial outlook of these workers.

Keep in mind that even though there is risk in financing to the buyer, you have the ability to take the property back should they default on their loan.

One-Event Bad Credit Buyers

One of the most common situations that will drive a buyer to try to finance directly with the seller is a one-time event that ruined their credit. Banks will simply look at the credit score and base the pre-approval or rejection of the loan on what the individual's credit score looks like.

One accident or mistake can often keep otherwise financially responsible people from being able to get a loan. Ask your buyer about the credit score and what caused it and if you're comfortable with their explanation, continue to negotiate a deal that suits both of you. You might find that they have experienced of any one of the following events, which caused their credit rating to take a tumble:

• hurricane
• fire
• serious family illness

Take the time to sit down and interview each potential buyer who hopes that you'll take a chance on them. Even though selling a home is about money, there is also some emotion that goes into it as well. Someone may qualify right away for a bank loan, but your heart might lean toward the person who would rather deal with you. Ask a real estate agent like Brian Adamski, REALTOR® to help you determine whether selling to someone through seller financing is a smart move for your particular situation.