Seller Financing rates ?

searcher profile

January 22, 2026

by a searcher from The University of Chicago - Booth School of Business in Rochester Hills, MI, USA

What is the typical interest rate for seller financing on deals under $500K, or is it primarily something the seller and buyer mutually decide?
2
19
319
Replies
19
commentor profile
Reply by a lender
from Cornell University in Los Angeles, CA, USA
Hi ^redacted‌ - nice to meet you and happy to answer this. Based on the deals I am seeing, on average its around 5-6%. Ultimately, it will depend on your negotiation, and can sometimes go higher, as others have pointed out. We have a lot experience financing various companies via the SBA. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I am seeing most transactions get done with interest rates between 5% and 7% right now, but I have seen them as high as 9% and as low as 0%. It really depends on what you can negotiate with the seller. Generally if you can get the rate better than you standard financing, it will help. But securing a long amortization is equally important to be sure cash flow works. I would be happy to discuss seller notes and seller financing at any time if you want to go through all of the options. You can reach me here or directly at redacted Good luck with your negotiations.
commentor profile
+17 more replies.
Join the discussion