What type of buyer is primarily targeted in a seller financing scheme?

In a seller financing scheme, the primary target is buyers with little or no credit. This approach is particularly beneficial for individuals who may struggle to secure traditional financing through banks or mortgage lenders due to their credit history or financial situation. Seller financing allows these buyers to negotiate directly with the seller, potentially bypassing stringent credit assessments and financial scrutiny that they might face with conventional lenders.

This financing method often involves the seller acting as the lender, agreeing to accept payments directly from the buyer over time, which is attractive to those who cannot access typical financing. Consequently, this model opens up opportunities for individuals who might otherwise be excluded from purchasing a home, thus expanding the pool of potential buyers.